Link to the Case Study Document: University case study.pdf
● Link to the Case Study Video: Youtube video
● Link to the Summary of Case Study by natalia Dadidou: Google Slides
● Link to the Peacewick Podcast: Soundcloud
● Link to the Key Terms: Quizlet
● Link to the Definition of Key Terms in relation to the case study: Google Docs
● Link to Case Study Story Line by Gema Quintanilla Google Slide
1
Table of Contents
Helpful Links
1
Unit 1 - Business Nature and environment
4
Potential Questions
Notes
4
15
1.2 Types of Organisations
NPO
15
15
Advantages
15
Disadvantages
16
Definition
16
1.4 Stakeholders
16
Stakeholder Profiles
16
Stakeholder Conflict
18
Analytical Tools
1.3 Organisational Objectives
SWOT analysis
19
19
19
Example 2
24
1.5 External Environment
27
PEST analysis
27
STEEPLE Analysis
31
Example 1
31
Example 2
33
Potential Tools and Formulae
36
1.3 Organisational objectives
36
1.5 External Environment
37
1.7 Organisational Tools
37
Unit 2 - Human resources management
37
Potential Tools and Formulae
37
2.1 Functions and evolution of human resource management
37
2.2 Organisational structure
37
2.3 Leadership and management
Leadership Types
2.4 Motivation
37
37
41
2
Motivational Theories
41
Potential Questions
41
​Time devotion, influence , risk bearing , tasks , vision
Unit 3 - Finance and Accounts
46
50
Potential Questions
50
Potential Tools and Formulae in Question
52
Cash flow forecast template
53
Income Statement/Profit and Loss Account Template
54
Balance Sheet Template
54
Potential Questions
56
Unit 4 - Marketing
58
BCG Matrix
58
Potential Questions
58
Unit 5 - Operations Management
60
Potential Questions
60
Sustainability Issues (economical, social, environmental)
64
Potential Sustainability Issues Solutions
65
Possible other questions
66
Question Bank
75
Possible questions for Section B:
77
Potential Questions for Section B
79
Timeline of events
80
Definitions
82
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Unit 1 - Business Nature and environment
Key Terms - Quizlet
Google Document -
Definition of Key Terms in relation to the case study/Peacewick University
Potential Questions
1. Explain why PU is classified as both a tertiary and quaternary sector business
●
Tertiary: Because it provides education as a service
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Quaternary: Since PU is Involved in research (IT faculty)
2. Which of PU’s functional departments have been recently affected? Explain why?
Technology and equipment: Lecturers and students did not have the skills as well as the necessary
IT equipment for online lectures. Many lecturers lacked the IT skills to give online lectures.
Human resource management: Staff turn over in the faculty of history is high. Many of the faculty
resigned, in addition-, Adriana has to deal with cases of alleged bullying by Jim Summerfield, head
of the faculty. Moreover, Patricia Hughes, a formal lecturer, is taking PU to court because of what
she believes is an unfair dismissal.
Finance: The finance department has had to and must continue to identify methods to improve
profit, for instance by reducing outflows by deciding to cut down on certain costs (e.g. possibly
cutting costs on unused equipment, budget for international conferences. etc.). Moreover, they will
likely have to consider new pay structures for the employees.
3. What is the legal structure of Peacewick University?
Peacewick University is an Non-profit business (use their surplus revenue over cost to finance their
objective or mission)
4. Identify PU’s stakeholders (see stakeholder table below for a detailed response)
Internal
• Board of Trustees (Andriana Cortez, is
president, Di Jones is a member)
• Lecturers
• Heads of Faculties (Jim Summerfield is Head
of Faculty of History)
• Other PU employees
External
• Students (i.e. are PU’s customers)
• Government
• Local community
• Activists
• Companies that provide funding for research
• Companies that provide funding for IT
• Guest speaker
• Other universities (competitors)
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5. Outline the impacts of the catastrophic accident on the stakeholders.
●
1. Stakeholders are people or organisations that have direct interest with the activities of the
business. 2. A stakeholder is any individual or group that affects an organisation or is affected by it.
Stakeholders are often classified as internal (CEO, different level managers, employees and
shareholders/owners) or external (customers, suppliers, unions, competitors, the government and
society as a whole).
●
It negatively impacted all of the stakeholders, for instance students. Some international
students had to return back to their home country for education.
●
Students demotivated due to the shift to online lessons (Speculative, rather uncertain)
●
It negatively impacted employees as many of them were dismissed due to this accident (10%
staff redundancies)
●
It impacted the government as they had to give money to the business to keep it functioning
(medical research) (wouldn’t call it an “impact” since it is their decision to do so)
●
Management - crisis management of accidents, probably working longer hours, dealing with
high stress situations, conflict in the workplace, damages, repairs, costs, budget variations. (again,
speculative)
●
Employees - likely demotivated because of closure, loss of students, online teaching,
redundancies all creating low morale. Generally a stressful situation, lecturers are usually looked to
by students for support, guidance and leadership.
●
Competitors: Eventually a positive effect on competitors who are not affected by the
catastrophic accident, as they will see a potential increase of applicants. (Maybe, but Adriana has
adopted vigorous marketing strategies in contrast to most other universities during Economic
recession) would argue that it will have a positive effect in the ST but not in LT.
6. Outline 2 potential advantages of government grants for PU
A government grant is a financial award (Transfer payment) given by a federal, state, or local
government authority for a beneficial project
●
A potential advantage for PU receiving government grants is that they do not have to be paid
back to the government and thus have no interest associated with them. This will allow PU to fund
endeavours without worrying about payback.
●
Another potential advantage for PU receiving government grants is that it will help them to
mitigate the cash flow crisis they are currently facing and perhaps allow them to develop a new
revenue stream in the field of medicine.
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7. Outline two impacts of the chemical accident on PU's stakeholders. (Credits:MJ) (isn’t this
the same as question 5?)
●
Stakeholders are individuals or organisations who are interested in the -outcomes of an
organization, in this case in PU’s well being. Stakeholders can either be external (customers,
suppliers, competitors…) or internal, employees managers and directors.
●
Two impacts of the chemical accident on PU’s stakeholders,with the chemical accident PU
had to cut down costs, one of the ways this was done was through the dismissal of staff. 10% of
teaching staff and support staff were made redundant. In addition to this, 20% of staff were moved
to part-time employment. This could lead to demotivation in their jobs as they have a lack of job
security with the uncertainty of their situation.
8. Outline two advantages and disadvantages of PU being a not-for-profit non-governmental
organisation [NGO]. (PU isn’t a NGO? Non profit, yes, but not an NGO. Line 11 in case study
clarifies it as a non profit business.)
●
Advantage 1: Tax exemption Unlike many for-profit businesses, nonprofits are exempted
from taxes, which is a huge relief for an organization that relies mainly on donations and grants.
(Students pay a fees. Line 35)
●
Advantage 2: Many employees who work for nonprofits have a personal interest in and
commitment to the organization’s cause. This results in higher productivity and more motivated
employees.
●
Advantage 3:PU’s founders, officers and workers are not personally liable for the
organisation's debts, including fines and lawsuits. In other words, founders have limited liability.
●
Disadvantage 1: Public relation, NGOs will have to improve their public reputation since all
their sources of finance come from the public. (Again, fees, line 35) For example, PU has a good
public reputation in its faculty of IT, where one of the world’s largest software companies are
willing to provide them funding for further research.
●
Disadvantage 2: Social pressure, NGO’s usually have a lot of pressure from political
activists and others. For example, PU was pressured by political activists to remove Di Jones (the
director of a multinational computer who was funding research in PU) because of her family history.
●
Disadvantage 3: PU has limited sources of finance as a NGO (as compared to a for-profit
organisation), and their main source of finance (student fees) has taken a major hit, with
international students leaving and lower expected admission rates. (PU’s main source of finance is
student fees + whatever loans they may pick, this is due to it’s nature as an NPO. Not as an NGO.
A for profit business would diversify it’s revenue streams. This is not PU’s goal, hence they did
not diversify)
9. What would be the benefits of PU having/following ethical objectives?
Having ethical objectives is important as it helps the business gain a better public image in the eyes
of the stakeholders. This results in the business being more likeable in the eyes of the stakeholder
which could lead to positive Word of Mouth promotion.
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Some helpful points:
●
Attracts investors (good reputation)
●
Helps to build employees, investors and customers' loyalty
●
Creates a positive company image
●
Increases employees' motivation.
●
Helps to attract potential candidates for employees
●
Has a close link to PU’s commitment to v
10. Outline advantages of being committed to CSR
CSR applies to businesses that consider the interests of society by taking responsibility for the
impact of their decisions and activities on customers, employees, communities and the environment.
●
CSR increases employee engagement.
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CSR improves bottom-line financials.
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CSR supports local and global communitment opportunities.
●
ties.
●
Increases invesPresents press opportunities.
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Increases customer retention and loyalty.
11. Outline the effects of the external environments on an organization
●
External environment factors are elements, such as social attitudes, changes in the economy
and the legal structure, that exist outside of a company's internal environment that can affect a
company's operations. These outside forces can help the business or present challenges to its current
processes. Managers often keep track of external environment factors so they can recognize and
resolve the issues the factors cause and make appropriate CSR changes.
●
External environment factors are important because they can cause direct and indirect effects
on business operations, personnel and revenue. The external environment of a company changes
constantly in ways beyond the company's control, but executives and managers can track these
changes and minimize their consequences. Choosing to monitor the dynamic nature of external
environment factors allows businesses to protect themselves against predictable events and mitigate
the effects of unexpected changes.
12. With reference to PU, explain the purpose of the business plan. [6 marks]
A business plan is a formal document that describes the business, sets out its objectives and strategy,
identifies its market and provides its financial forecasts.
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A business plan is implemented in order to show the businesses strategies and goals moving
forward. This is due to the fact as it provides insight on the next steps that should be taken by the
business to ensure a successful future. It is an important planning tool for successful management of
a new business as well as providing important information for different stakeholders. PU’s business
plan involved building a new lecture theatre, a new building for the music faculty, installation of
renewable energy sources and improved pay structures for lecturers. This was all backed by a
projected increase in the number of students attending PU. As all these ventures would require
capital investment, having a positive projection in the business plan can be used to reassure any
lenders such as the bank that PU looks for the finance. Furthermore, A business plan can be used by
any stakeholders of PU, the board of trustees, to evaluate the future performance of the organisation
and also evaluate whether their investment in the organization has been put to good use. During the
recovery period of the organisation, the business plan will aid in setting firm objectives which could
be corroborated with quantifiable figures. This would instil confidence in potential investors and
also aid in PU reaching its mission/vision.
13. With reference to PU, what ethical choices should PU consider in order to improve their
CSR?
Revise employment contracts
Fire Jim summerfield (May end up negatively affecting CSR, an argument can be made in
comparison to Patricia Hudhes who was fired. Perhaps form of behavioural training may be
better.)
Remove funding company that is exploiting LDCs
Increase use of renewable energy and solar panel
14. With reference to PU, explain two advantages and one disadvantage of mission statement
[6 marks]
PU having a mission statement informs the stakeholders of the common purpose of PU’s
existence and values. These are “inclusivity, social responsibility, excellence, etc.” Adhering to this
mission statement can help set organisational objectives, especially as PU is faced with many
important business decisions to make their future. This could additionally gain additional support
and acceptance from various stakeholders like students, governments, as well as private investors.
PU’s focus in the mission about inclusion, social responsibility, etc. could be a motivating
force for both employees and managers who will appreciate working in this environment. This
could also attract new staff, which PU is in need of due to their many issues, and existing staff will
appreciate this culture evident within this mission statement.
However, it can be difficult to judge whether PU is meeting this mission statement. This is
evidenced by the fact that Di Jones has caused political controversy, the student politics society is
bringing in a guest speaker accused of antisemetic views, and one of the universities founders is
exploiting LEDCs. All of this may discourage potential support from stakeholder groups and many
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will argue that hypocrisy is present between the mission statement and what has occurred at the
university.
15. Using a SWOT Analysis Framework, identify two Strengths and two opportunities to
Peacewick
(see SWOT analysis below for answer)
16. How is PU meeting its sustainability goals due to the accident?
As there are now less students due to the accident, this is helping them meet their sustainability
goals. For example, as there are now less students, the University is decreasing their carbon
footprint through using less water, energy, and electricity. In turn, this is helping them decrease their
carbon footprint making them a more sustainable business. (Unjustified, due to the fact that
students could use more electricity at home. But yes, it may be argued that students’ activities at
home are not a responsibility for schools, hypocrisy presents.)
17. What is an economic recession?
A recession is a significant decline in economic activity that lasts for months or even years. Experts
declare a recession when a nation’s economy experiences negative gross domestic product (GDP),
rising levels of unemployment, falling retail sales, and contracting measures of income and
manufacturing for an extended period of time. Recessions are considered an unavoidable part of the
business cycle—or the regular cadence of expansion and contraction that occurs in a nation’s
economy.
18. With reference to PU, explain two elements of their Business Plan.
●
Installation of renewable energy sources - this was part of their original business plan as it
will help give the business a good public image by using renewable energy sources. This was also
put in place by the business as CSR is an important aspect of the business structure. So, through the
use of renewable energy sources PU can achieve their CSR commitments.
●
New building for the faculty of music - This is part of their business plan as it will help
create more resources and spaces for the staff which may boost their motivation. It is part of their
business plan as it is a goal the business was hoping to achieve in the near future.
19. With reference to PU identify and explain 2 differences in for profit and non- profit
organization.
A non-profit organisation or a “not-for-profit” business like PU is to provide a service or benefit to
the community with no intention of earning a profit. This is supported by PU’s mission statement
which is based on “social responsibility”. On the other hand, a for profit organisation is one that
operates with the sole intention of creating profit.
For-profit organisations tend to fund themselves for business projects and operations through their
own profits and revenues. On the other hand, a non-profit is more likely to receive funding in the
form of grants through the government for students and employees.
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Any surplus revenue received by PU is simply reinvested into the business, rather than being
enjoyed by shareholders or as bonuses by executives and managers.
With reference to PU, explain the interests of two stakeholders [4]
Students of PU will have an interest in receiving a high-quality education in their subject area, as
they are paying fees for this service. As a result of the contamination, some students will feel like
they are not receiving this due to having online lessons and no accommodation and so will be
dissatisfied.
Lecturers at PU will have an interest in fair pay and job security. Some lecturers at PU have been
made redundant and some have had to switch to part time employment. This will concern current
lecturers who may now fear for their jobs, especially with continuing cash flow problems, which
could impact their motivation and quality of lessons.
20. With reference to PU, explain the effects on two stakeholders of the accident at the
chemical plant [4]
One effect was on the students at PU is that some student’s accommodation was damaged, meaning
that students would have needed to move back home, especially some international students. This
would have been time-consuming and led to additional travel costs which may have been
unaffordable for some students. Another effect was on the lecturers at the university, they had to
switch to teaching online, due to issues with training and equipment, some lecturers would not have
been able to deliver effective lessons, this would have negatively impacted their motivation as they
may have felt unable to teach well as not all hygiene factors would have been in place/Maslow’s
needs not being met such as love and belonging due to lack of face-to-face contact. Decrease in the
quality of lessons.
21. With reference to PU, describe two possible stakeholder conflicts that may occur [4]
There may be a possible conflict between the students and the university itself, the university is
wanting to still have quality experience for the students but due to the contamination and damage,
students had to attend lessons online, for some students this meant that they had to also move back
to their home country. This would result in not only increased costs for the students, but they may
suffer a fall in the quality of their teaching, this was evidenced by some dissatisfied students and
some demanding compensation. Another conflict may be between Adriana/the university and the
trustees. One of the new trustees, Di Jones, is facing pressure from activists to be removed from her
role due to her family using slaves in the past. Adriana may be forced into a position to remove her
due to this pressure and fear for the reputation of the university, however the trustees may not
approve this as it can be argued that her family history is not Di Jones fault. This could lead to a
breakdown in the relationship.
Pressure groups vs Employees/Managers/Students: Di Jones, Guest Speaker for Student Politics
Society (with controversial anti-semitic views)
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22. Explain the impact of online teaching on two stakeholders [4 marks]
Two Stakeholders : Students & Teachers
Impact on Students: One of the biggest impacts of online learning for a student will be struggling
with focusing on the screen for long periods of time, because of which the quality of the education
the students receives through online learning would be comparatively below the particular standards
otherwise compared to the normal learning.
Impact on Teachers: For the teachers online teaching may result in an increase in the workload, as
online classes limit the interactions hence increasing the workload of the teachers which as a result
might result in demotivated teachers.
23. With reference to PU explain an advantage and disadvantage of Internal Growth [4]
1. Internal growth is when a business grows using its own resources to increase in size.
2. Internal growth includes everything an organisation undertakes on its own to expand and develop.
An example of this for PU would be if they were to open a new campus in country B. This would
lead to increased revenue opportunities for PU through increased fees, as well as expanding brand
awareness of the university; this could lead to improved facilities to enhance the student experience.
However, internal growth can be a slow method of growth and expensive. PU already has cash-flow
problems and is losing students so a move to another country seems risky at this point in time as
they may not have sufficient funding to afford this option unless they access sources of finance. On
the other hand, internal growth ensures greater control and coordination (than external growth) as
there is no merging of separate organisations, which implies that the control is not diluted to other
external authorities.
24. With reference to PU, explain two features of being a not-for-profit business [4]
PU is a not-for-profit business as their aim is not to make a profit for shareholders but rather to
invest in the university such as in new research and to improve facilities. Non-profits like PU also
have a board of trustees, who discuss strategy and resource allocation to ensure that the fees
generated are used in an appropriate manner, PU have different community representatives, so
everyone’s view is considered.
25. Describe two STEEPLE factors that have impacted PU [4] /two ways PU have impacted by
changes in the external environment
●
One factor would be economic factors, the country PU are based in is currently in a
recession which is predicted to continue for years to come. A recession is when an economy has two
consecutive negative quarters of GDP growth. In a recession, consumers may be less willing to
spend their money, this may impact student numbers at PU as potential falling incomes could
reduce demand both now and, in the future, a real issue given already falling numbers.
11
●
Another factor would be political factors, after the accident and explosion, the government
has stepped in to provide government grants and IT equipment to some of PUs students. This would
have meant that more students could access the online lessons that they are providing and students
seemed to be happier with the course as a result. They could be used in the future to support
students with their work, even after lessons return to normal.
26. Why is CSR important for Peace Wick ?
Differentiate them from other universities and act as a USP (unique selling point), something which
is very important for PU given that student numbers are decreasing. This could ultimately increase
numbers if promoted effectively. However, PU have faced some ethical issues that may affect their
CSR. For example, the accusation of a company that funds medical research for the university
overpricing medicines in LDCs and selling unapproved medicines. This could have a knock-on
negative impact on the research that PU are doing, as many stakeholders may be unhappy about this
as this goes against their mission statement and articles, this could lead to a fall in the brand image
of the university. As a result, there may be possibly less funding for research, as other companies
may not want to be associated with PU, in case people believe that this occurs in all projects.
PU will be meeting its moral objectives as a firm by completing CSR. Additionally, growing
importance and focus on organisations which are ethical and sustainable implies that with greater
efforts in CSR, PU can improve its brand image thereby, making it more appealing to students all
over the world.
27. Explain the opportunities and threats PU may face when opening a campus in Country B
[6]
One opportunity of opening a campus in country B could be an increase in revenue fees in another
country, as well as expanding brand awareness of the university, this could lead to improvements
that ultimately enhance the student experience. Despite recent issues, PU still has a strong
reputation and with targeted promotion could quickly increase student numbers in a new area and
help them to spread risk. A possible threat could be that it would be difficult to enter a new country
where there would be lots of existing established universities. Students may not want to take the risk
of joining a university with no evidence of strong results in that country so high costs of promotion
will likely be required, which may be problematic, given that PU has cash flow issues. Furthermore,
there may be economic uncertainty, whereas it is unknown if there is also a recession in country B,
this could be a potential issue which would affect the income of students/parents and reduce demand
for their courses.
28. Explain the role of ethics for PU [6]
Ethics are moral guidelines that guide decision making and strategy.
PU could be argued to be ethical due to their work on ecological sustainability, for example all their
electricity is coming from solar panels, and they aim to ensure the future refurbishments are much
more sustainable. As well as long term cost savings that PU can benefit from because of this, this
could help to differentiate them from other universities and act as a USP, something which is very
important for PU given that student numbers are decreasing. This could ultimately increase numbers
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if promoted effectively. However, PU have faced some ethical issues, for example the accusation of
a company that funds medical research for the university overpricing medicines in LDCs and selling
unapproved medicines. This could have a knock-on negative impact on the research that PU are
doing as many stakeholders may be unhappy about this as this goes against their mission statement
and articles, this could lead to a fall in the brand image of the university. As a result, there may be
less funding for research as other companies may not want to be associated with PU, in case people
believe that this occurs in all projects.
*STUDENT OFTEN MISINTERPRET USP AS SOMETHING SPECIAL IN ORDER TO
DIFFERENTIATE A BUSINESS FROM ANOTHER. IT IS ALSO IMPORTANT TO KNOW
THAT IT PROVIDES COMPARATIVE ADVANTAGE FOR A BUSINESS. CSR AND ETHICS
MAY BE SOMETHING THAT PU HAS THAT OUTCLASSES OTHERS, BUT DOES IT TRULY
REPRESENT A COMPARATIVE ADVANTAGE? OTHER UNIVERSITIES AREN’T
PURSUING THE GOAL OF SUSTAINABILITY AT ALL?
29. Explain the role and impact of globalisation on the growth and evolution of PU [6]
Globalisation has benefited PU as they have been able to attract many international students to the
university who pay more compared to other students. This had allowed PU to invest further in
research and facilities and differentiate themselves from competitors. However due to the damage
caused by the contamination the loss of these students really impacts growth for PU as without these
fees, they may not be able to afford any future growth such as the planned new campus. In addition,
globalisation could have allowed PU to attract a wider range of lecturers with different skill sets. PU
are also wanting to open a new campus in country B, this could lead to an increase in revenue fees
in another country, as well as expanding brand awareness of the university, this could result in
improved facilities to enhance the student experience. Despite recent issues, PU still has a strong
reputation and with targeted promotion could quickly increase student numbers in a new area and
help them to spread risk. However, depending on where this country is, they may be influenced by
issues such as exchange rates with fees and cultural and linguistic differences which need to be
considered within the teaching. Please be aware that globalisation mostly refers to business opening
in an international scale* Doesn’t seem to be particularly true for PU. Yet, this is the best possible
answer for the given question.
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30. Possible 10 marker? Based on the data provided, construct a decision tree to apply the
outcome with information in the case study to recommend which growth option PU should
pursue.
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31. Explain two reasons why PU would construct a business plan
●
The plan could be a necessary supporting document shared with potential investors or
loan-givers in order to obtain the capital needed to start the project.
●
Plan and evaluate in advance, the risks associated with expansion (by evaluating the threats
through a SWOT analysis or STEEPLE)
32. With reference to PU, explain the importance of CSR
Corporate social responsibility is the duty that the firm has to the internal and external stakeholders
(including the environment) to operate in ways beneficial for society. Being a not for profit
organisation, PU doesn't distribute its profits towards shareholders. Rather, it reinvests it into the
university to pursue its mission and vision statement (which for PU is most likely going to involve
some sort of community or society benefits). By doing this, PU is positioning itself as a social
enterprise, having the characteristics of caring for the society and environment as well. If CSR is
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ignored, their reputation would plummet and key stakeholders such as the government or the
chemical/ technological companies aiding PU will no longer want to be associated with their
practices. PU may not be qualified to receive government grants or subsidies, and its bad reputation
would affect its main source of revenue which is student tuition fees. Their competition would have
an edge over them as their image could be better to be associated with than PU. This would also
affect other revenue streams such as donations to PU which are heavily reliant on PU’s positioning
as a social enterprise and its operations being beneficial to the members of society.
33. Describe two changes in the external environment that have affected PU. [4 marks]
The economic recession caused PU to make about 10% of its staff redundant and 20% part-time
employees in order to reduce costs. (So the catastrophic accident isn’t a factor for the redundancy?)
It has also caused a decrease in applicant numbers which has caused a decrease in local revenue.
Additionally, one can attribute PU’s below satisfactory cash flow
position to the economic recession as it slows down business activity. Together with the chemical
plant disaster, PU became unable to meet its 2021/2022 business plan aims and objectives.
The chemical plant caused PU to have to stop on-site teaching until its effects had been minimized.
It caused teachers to have to resort to tele-working which affected the quality of PU’s teaching
service. Additionally, it put pressure on PU to provide teachers and students with the necessary IT
equipment to facilitate off-site teaching and learning which could further worsen their cash flow
position as they lack the necessary funds to cater to all students and staff.
34. With reference to PU, explain two roles of the mission statement
A mission statement refers to the declaration of an organisation’s overall purpose. It forms the
foundation for setting goals and objectives for the business. It tends to outline the values of the
business, i.e. its beliefs and guiding principles that set the framework for how managers and
employees operate on a daily basis.
The purpose of PU is to provide quality education to its students across a variety of subjects ranging
from History to IT. They also wish to expand to a new country and open a second campus where
they will continue to provide the best-in-class research and teaching facilities.
PU’s organisational values that determine its mission statement are inclusivity, excellence,
perseverance, commitment, resilience, ambition, and creativity. They function in accordance with
these values & beliefs and encourage their students to instil the same.
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35. Identify and explain two potential sources of finance that PU could use to refurbish
teaching facilities that were damaged by the accident. [6 marks]
One source of finance PU could use is a long-term loan. This would provide PU with an immediate
large sum of money that they can invest into refurbishing its teaching facilities, which then only
need to be paid back in smaller instalments over a long period of time, fitting for a long-term
investment such as the refurbishment of PU’s teaching facilities. Future revenue generated can be
put towards paying back this loan. (Intrinsically weak argument, PU is a NPO which financial
institutions might be unpleased to give the loans, especially they are suffering from severe cash flow
problems)
→ Why would banks lend money to an organisation whose ultimate objective is not profit
maximisation? Why would they risk it? Even though PU has a good reputation, it is mainly because
of its high quality service, not its brand or size.
If a bank loan must be chosen, the candidate could have mentioned PU’s medical research as
something valuable to persuade financial institutions to give the loans.
Another source of finance is the continuation of government grants. Since the damage inflicted to
PU’s teaching facilities were as a result of external factors beyond the organization’s control, they
can apply for another government grant. Given PU’s commitment to CSR (corporate social
responsibility) and its beneficial research into medicine and IT, it presents itself as a strong
candidate for a government grant, especially as refurbishing its teaching facilities will only serve to
further fulfil PU’s ethical objectives. In contrast to loan capital, a huge advantage of government
grants is that they do not need to be repaid, preventing the worsening of PU’s cash flow problem.
(This seems to be one of the best options, well explained.)
With reference to PU, discuss the effectiveness of corporate objectives. (At most 4 marks, but
possible variations can lead to higher marks. Such as effect on motivation, efficiency, labour
turnover)
Corporate objectives refer to the long term and short term goals a business aims to achieve. Long
terms goals are broader and larger business objectives that require a greater period of time to
achieve, such as becoming market leaders or opening branches internationally. Long term corporate
aims usually require the business to be established for a certain period of time and requires the
business to reach a degree of success. In reference to PU, their long term goals for now are to repair
it’s damaged facilities and reopen them, open a second location in Country B. Short term goals on
the other hand refer to goals that must be met in a relatively short period of time, for many new
businesses this means surviving in the market, generating a customer base and start bringing in
revenue. As PU has been established for quite some time, its short term goals as of now relate to its
cash flow problem. PU’s short term goals involve increasing revenue, meeting its short term costs
and providing IT equipment for students and staff.
17
Notes
Compensation- The chemical plant, due to its callousness may be under obligation to compensate
the university for damages caused- + No need to pay back, not using PU’s own money, - May be
worth lesser than the actual value of damage caused, may be paid in increments rather than all at
once.
Loan - Peacewick can acquire a loan from a bank to cover the necessary costs for refurbishing the
damaged facilities, this would allow them to cover all costs and slowly pay it back in installments
over months.
Grants and Subsidies: A grant is a large sum of money given by the government to the university.
Whereas, a subsidy is when the government discounts the price of certain products for the university
by paying the difference to the seller. The government can assist the university in building resources,
and they have already subsidised the costs of computers and other technology. This external source
of finance will come at no cost to the university itself and is effective to garner resources to rebuild
and expand.
Sale of Assets/Leasing: A sale of assets is when the university can sell dormant/unused assets for
cash. A lease is temporarily lending certain assets for cash. As student numbers are currently low,
the university can sell or lease their assets that are currently being unused. This will provide
short-term liquid cash which can be used for various purposes, and leasing will increase the cash
inflows, improving the cash flow.
1.2 Types of Organisations
Peacewick University is organized as a “not-for-profit business” (12)
NPO
Advantages
-
limited liability so the owners have a separate identity from the university
-
Can be exempt from taxes , which reduces overall costs
-
Board of Trustees (12) can maintain high amount of control
Disadvantages
- Limited funding as making a profit isn’t the main goal for the business, which could lead to cash
flow problems (57)
- Limited funding also means less money available to promote staff and increase their salaries, this
means that motivational theories such as Pink are unable to be employed to increase staff morale.
18
Potential Question: Would Peacewick University benefit from becoming a private/public limited
company?
This means that their goal now is to maximize profit and reduce costs. This would force them to
abandon their CSR responsibilities, including the solar panels in order to drop the expenses etc.
This may lead to lack of motivation for the workers and staff in the university as some of them may
have been motivated by the purpose of the one of the CSR responsibilities. This will also make it
relatively harder for Peacewick to look for investors to raise finance as some investors were intially
attarcted towards investing because of the CSR responsibilities of Peacewick may not want to invest
anymore. Peacewick won't be able to enjoy government grants and would have to pay higher levels
of corporate taxes. This howeve may be compensated by becoming a private/public company
because this will help them raise finance for future ventures like expanding to Country B. If
Peacewick is a public company, it may raise high amount of finance through their IPO. This will
help them deal with their current cash flow problems. However, stemmimng to this is also a
drawback that Peacewick would have to share its profit. As a NPO Peacewick could reinvest its
profit back into the business however, now the profits will have to be shared with the shareholders. I
think Peacewick university would benefit from becoming a public limited company as it will help
them deal with their major issue of negative cash flow.
Definition
Define the term not-for-profit organisation.
➔ A not-for-profit organisation is a legal entity that does not earn profit for its owners. Anys
surplus earned through pursuing business activities or through donations goes right back into
running the organisation.
1.4 Stakeholders
Stakeholder Profiles
19
Other Stakeholders (Continued)
and Additional Information on
Stakeholders
CHARACTERISTICS / INFORMATION
Peacewick University (PU) (1)
➔ Founded as a teacher training college in 1935
➔ Became a university in 1992 (30 years old)
➔ Has strong IT, business, electronics, medicine,
engineering,
and media faculties. Traditional courses, such as history, are
still taught but do not have a high profile.
➔ Growth areas - AI & medicine research, enabling
competitive advantages with older universities
➔ Utilisation capacity high 1/5
➔ USP: Student satisfaction is high. (Incorrect, it may be
better to place NPO + CSR goals)
➔ Academic Year - October to July
Universities (9)
Competitors - older, more traditional universities
Students
Comprised of:
(customers who purchase
PU’s service)
Local students
International students (Pay a higher fee than the fees
from local student)
(Economically disadvantaged students)
Jim Summerfield
- Autocratic leadership style
- Potentially harmful to university reputation
20
Patricia Hughes
-
Many lecturers have low morale now and are
angry about how Patricia was dismissed
Potentially harmful to the university’s reputation
Faculty of history
- Faculty on the verge of being cut from the business
- Faculty likely unhappy about this turn of events
Government
- Gives a large amount of funding to the Faculty of Medicine
Stakeholder Conflict
Employees and Management: 10% were made redundant and 20% were made part time.
Management was spending more money on marketing and promotional activities.
-
Jim Summerfield & Patricia Hughes
-
Conflict between leadership team and teachers
Teachers want higher pay and greater job security amidst times of economic recession in
Country A
Leadership team unlikely to want to decrease pay as they need finance to fund expansion
to Country B; Want to retain some profits for reinvestment
Leadership team likely wants to reduce costs by making staff redundant → Reduced job
security and morale for teachers
-
Conflict between student community and teaching faculties
-
Accident at chemical plant caused a shift to online lessons → Lower quality
-
Teachers were inadequately trained for the online dynamic
Demanding compensation for the poor quality (QA & QC) of organisation and teaching
→ Teachers and school management unlikely to want to give compensation as that reduces their
salary and profits
promotion
General dissatisfaction → Negative reputation generated through word-of-mouth
21
Analytical Tools
1.3 Organizational Objectives
SWOT analysis
SWOT analysis provides a framework for decision makers to consider factors in both the internal
and the external business environment that affect their operations. The internal factors can be
classified as either strengths or weaknesses within the organization. The external factors can be
classified as opportunities or threats, as outlined in the case study.
Example 1
22
Line numbers from the case study are shown in brackets for ease of reference.–c
Detailed, well planned, and clear SWOT analysis. But still, students must clearly identify the analysis
before/after the accident + recession. For example, PU had a very high reputation but it got weakened due to
student dissatisfaction and low employee morale as a result of the accident/recession. So, it may not be so
appropriate to put an advantage prior to the accident for current PU.
23
Example 2
Strengths
●
Specialising in post-16 education (1)
●
PU has strong IT, business, electronics, medicine, engineering and media faculties (5)
●
Impressive growth in research into artificial intelligence and medicine at PU (6)
●
(8)
The research developments allow PU to compete with older, more established universities
●
PU is one of the most popular universities in the country (9)
●
A survey showed that measures of student satisfaction were very high (10)
●
The impact on student learning was minimised due to excellent work from the university
employees (40)
●
PU's aggressive marketing strategies, in contrast to most other universities, were cutting
marketing budgets because of the economic recession.
●
Increased training improved IT skills for some lecturers (79)
●
Less discernment and some computer manufacturers helped provide IT equipment for
students and employees through government grants (81)
●
They have CSR that relates to ecological sustainability; equality policies; mission statement;
bullying policies> linked to freedom of speech, tolerance
●
Fewer employee 9s and students at the university has led to significantly lower energy
consumption; it also means less waste, less use of water, less pollution, and a reduction in PU’s
carbon footprint (121)
●
All of PU’s electricity is coming from solar panels (124), which is more ecologically
sustainable and relates to PU's CSR.
●
PU has high student satisfaction in January 2020 (10)
24
Weaknesses
●
Traditional courses, such as history, are still taught but do not have a high profile (5)
●
Many of the teaching facilities became unusable after the chemical plant accident (22)
●
All on-site teaching stopped for two months (26)
●
The university had insufficient IT equipment for the lecturers (30)
●
Many of the lecturers had inadequate IT skills to prepare and deliver high-quality online
courses. (31)
●
Many lecturers found it very difficult to teach without face-to-face contact (32)
●
Many students lacked the necessary IT equipment or internet connection to attend online
lectures. (33)
●
(83)
Students demanded compensation because the courses did not meet their expectations (37).
●
Staff turnover in the faculty of History is high. Many of the faculty resigned, despite few job
vacancies in the domestic economy. (88)
●
Adriana is also having to deal with several cases of alleged bullying by Jim Summerfield, the
head of faculty. (89)
●
When Adriana spoke to some members of the faculty, she found low morale, anger at how
Patricia had been dismissed, and fear about further redundancies. (91)
●
PU's failure to follow its mission statement and the articles governing the university has
recently been alleged in social media and is now appearing in national newspapers, which is bad
publicity and gives PU a poor reputation (105)
●
A guest speaker at PU has been accused of expressing antisemitic views (112) and the public
is arguing that the university should not be a platform for intolerant views.
●
The director of a company funding PU's research has been revealed by political activists to
come from a family that used slaves, and activists want her removed from her position (110)
●
The greater use of online teaching has increased the energy use of computer servers and
broadband (126)
●
PU relies heavily on the higher fees paid by international students. (145)
●
Low staff morale > staff turnover (anxiety because of the online situation; Jim; they are not
consulted)
●
Over the summer, you may have negative cash flow because from july to september, students
don’t study there > not consistent all year through
●
Due to having a wide variety of subject, you can lose focus> economies of scale: limited
possibility of reaching economies of scale student inte
25
●
Adrian deals with daily issues, leads to loss of focus on the long term strategies instead of
the short term ones, since she is the president
Opportunities
●
The Faculty of Medicine received a large amount of funding from the government to
research medicines for reducing the impact on people and animals of exposure to dangerous
chemicals (44)
●
The Faculty of IT received funding from the founder of one of the world's largest software
companies to research the use of Artificial Intelligence (AI) in detecting contamination (46)
●
Faculty of Medicine received a large amount of funding from the government to research
medicines (42&43)
●
Financial support from pharmaceutical companies could result in commercial production of
the medicines produced by The Faculty of Medicine (74)
●
The Faculty of IT has produced prototype equipment using AI that enables improvements in
the ability to detect and identify contamination. (75)
●
Refurbish teaching facilities (138)
●
Opening another campus in Country B (139)
Threats
●
There was a catastrophic accident at a nearby chemical plant (19) (this was a threat at the
beginning > already happened)
●
Throughout 2020/21 there was an economic recession in the country (Country A), and it
may continue for several years (17&18)
●
Many local students have decided to postpone their studies for a year, many international
students will not return to complete their courses, and fewer new international students will enroll.
(52,53, and 54) > loss in application and revenue
●
Failures to achieve articles published by the university have recently been alleged in
social media and are now appearing in national newspapers. (105) This is actually a weakness.
“Threat” is defined as possible harm from an EXTERNAL environment. Whereas failure to achieve
certain objectives are something PU itself can control.
26
1.5 External Environment
PEST analysis
PEST analysis provides a framework for decision makers to consider factors in the external business
environment that affect their operations. These factors can be categorized as political, economic,
social and technological factors, which can present opportunities and threats, as outlined in the case
study. As there is no real-world context to Country A given in the case study, additional information
and data have not been included in the analysis.
27
Line numbers from the case study are shown in brackets for ease of reference.
22 (“PU is being taken to the court, accused by Hughes”, this is rather something relatable to “legal”
in either STEEPLE or PEST analysis. Student could have mentioned Economic recession in
Economic factors.
28
29
STEEPLE Analysis
Example 1
Social
Line
Technological
Measures of student satisfaction were
very high in the January 2020 survey.
4-5
It has strong IT, business, electronics, medicine,
engineering and media faculties.
The university is organised as a
not-for-profit business and has a board of
trustees made up from representatives
of the community, employees,
businesses and government.
6-8
The growth in research into artificial intelligence
and medicine at PU has been particularly
impressive, and these research developments have
enabled the university to compete effectively with
older, more established universities.
The plan also included installation of
renewable energy sources on the
university campus and an improved pay
structure for lecturers. However, it soon
became clear that the plans were
unrealistic.
30
The university had insufficient IT equipment for
the lecturers.
30
Social
Line
Technological
Measures of student satisfaction were
very high in the January 2020 survey.
4-5
It has strong IT, business, electronics, medicine,
engineering and media faculties.
FULL PARAGRAPH OF ETHICAL
ISSUES AND SUSTAINABILITY
31
Many of the lecturers had inadequate IT skills to
prepare
and deliver high-quality online courses.
Many lecturers found it very difficult to teach
32
without face-to-face contact.
33
Many students lacked the necessary IT equipment
or
Internet connection to attend online lectures.
The Faculty of IT received funding from the
founder of one of the world’s largest software
companies to research the use of artificial
43-46 intelligence (AI) in
detecting contamination.
The Faculty of IT has produced prototype
75-76 equipment using AI that enables improvements in
the ability to detect and identify contamination.
This decline at PU reflects falling interest in those
149
subjects in schools. Some trustees have suggested
no longer offering these subjects and using the
subsequent savings to expand further provisions to
the Faculties of Medicine and It
SUSTAINABILITY FULL PARAGRAPH
31
Example 2
Social: international and local students
➔
Increasing importance of the medical and IT sector has allowed PU medical and IT faculties
to flourish.
➔
Social networking has also influenced the way students view higher education. Through
social media, students have shared ideas on better colleges and universities to enrol into nationally
or locally. Indeed, the social environment has impacted how people view higher education and the
learning system all together. This has made PU’s marketing strategies of using social media
effective.
➔
The university has an emphasis on meeting the needs of 21st-century society, so it has strong
IT, business, electronics, medicine, engineering and media faculties. This market orientation allows
it to move with the shifting cultures of its customer base.
➔
Survey for students preferences
Technological: AI to detect contamination, online lessons, no access to IT equipment for some
students, lack of IT skills.
·
PU has strong IT, business, electronics, medicine, engineering and media faculties and it’s
growing in research into artificial intelligence and medicine.
·
When the chemical accident occurred:
o The university had insufficient IT equipment for the lecturers
o Many of the lecturers had inadequate IT skills to prepare and deliver high-quality online courses.
o
Many students lacked the necessary IT equipment or internet connection to attend online
lectures.
o Faculty of IT received funding from the founder of one of the world’s largest software companies
to research the use of artificial intelligence (AI)
o The Faculty of Medicine’s research into medicines is proving positive following testing on the
public.
Economic: Economic recession in country A → redundancy, economically disadvantaged students
➔
Throughout 2020/21 there was an economic recession in the country (Country A), which
may continue for several years. This may adversely impact the University’s income due to the
affordability of its service decreasing. Decreasing business and consumer confidence due to the
recession might also have the same effect.
32
➔
Government and private funding decisions, funding the research at the medical and IT
department, has ensured confidence in PU’s stakeholders.
➔
The educational sector is rapidly growing, which, while increasing the competition faced by
PU, it also increases its chances of growth in the coming years.
Environmental:
Environmen
- Switch to
tal:
remote
Chemical
education
plant
explosion in - Damaged
2021 (18)
assets
All on site
teaching had
to be
stopped
- Students
weren't able
to have their
promised
conditions
-Maintained
their
aggressive
marketing
strategies
despite the
financial
difficulties
-Insufficient
IT
equipment
-Insufficient
online
teaching
skills
- Future
goals are
to
refurbish
- Rebuilding
teaching
all damaged - Anxious facilities
facilities
about
teaching
- New
- Negative
online
IT
cash flow
program
s needed
Students
Redundancy for
wanted
due
to remote
money back insufficient
learning/
because of
cash flow
working
dissatisfacti
on
➔
chemical plant explosion, water supplies contaminated, CSR related to ecological
sustainability,
➔
Energy consumption has fallen due to online lesson
IMPACT:
➔
Health and safer issues, such as water contamination, which will adversely impact PU’s
brand development and brand image.
➔
Social needs not being met as staff and students work remotely (online)
➔
Damage to student accommodation and student lifestyle will harm any USP that PU has
important considerations for most universities.
33
Political: government grant providing for IT equipment
The Faculty of Medicine received a large amount of funding from the government to research
medicines for reducing the impact on people and animals of exposure to dangerous chemicals.
Legal:
➔
Legal battles with Patricia Hughes; Negative publicity, incurring legal fees
➔
Country A and Country B’s laws around ecological sustainability
➔
Laws around international students - The more strict the laws, the lesser the international
students will enroll - Since they pay a higher fee, PU’s operations are heavily dependent on them
Ethical:
➔
controversy around Di Jones and slave owner ancestor, antisemitic guest speaker,
exploitation of less economically developed countries, CSR, pressure groups
➔
Consequences of these: Effects on the brand image which can reduce the number of new
students and staff that apply to the university, Difficulty in finding new sources of finance, especially
if the corporate image of PU is damaged by its association with unethical businesses and their
questionable practices.
➔
Increased training improved IT skills for some lecturers, and there seemed to be less
discontent among students about the quality of the courses.
➔
The government and some computer manufacturers helped provide IT equipment for
students and employees through government grants, but there were still significant shortages of
equipment, particularly for economically disadvantaged students.
➔
Political activists have discovered that Di (which donated to PU) is descended from a family
that used slaves on their sugar plantation in the 19th century.
➔
The student Politics Society has invited a guest speaker who, in the past, has been accused of
expressing antisemitic views in one of his books. The society is arguing that freedom of speech
should be upheld, while other groups, including students and lecturers, say that the university should
not be a platform for intolerant views.
➔
One of the companies funding medical research at the university has been accused of
exploiting least developed countries (LDCs) by overpricing medicine in those countries and selling
medicines that have not been approved in the European Union or the United States.
34
Potential Tools and Formulae
1.3 Organisational objectives
● SWOT analysis
● Ansoff Matrix
1.5 External Environment
● STEEPLE analysis
● PEST analysis
1.7 Organisational Tools
● Fishbone Diagram (AO3/AO4)
● x Tree
● Lewin’s Force Field Analysis
Unit 2 - Human resources management
Potential Tools and Formulae
2.1 Functions and evolution of human resource management
-
Labour turnover formula:
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑆𝑡𝑎𝑓𝑓 𝐿𝑒𝑎𝑣𝑖𝑛𝑔 𝑡ℎ𝑒 𝐹𝑖𝑟𝑚 𝐷𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑃𝑒𝑟𝑖𝑜𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑊𝑜𝑟𝑘𝑓𝑜𝑟𝑐𝑒 𝐷𝑢𝑟𝑖𝑛𝑔 𝑡ℎ𝑒 𝑃𝑒𝑟𝑖𝑜𝑑
× 100
2.2 Organisational structure
-
Handy’s Shamrock Organisation
Part-time workers: administration staff
Core workers: teaching
Outsourcing: food catering, buses
Potential questions:
1. Define Redundancy and state its one advantage and one disadvantage for PU [4
marks]
Redundancies occur when a business can no longer afford to employ the worker or when the job
ceases to exist (due to technological innovation). In regards to PU, Adriana decided to lay off 10%
35
of teaching staff, this will help reduce outflows and fix the cash flow problem. On the other hand,
this will cause an increase in staff turnover at PU, which worsens PU’s image.
Well defined and explained but would be better to say it will lower worker’s morale which leads to
poorer lecture performance. Hence, worsen PU’s image and the quality of the courses.
Evaluate a leadership style best applicable for PU. (Maybe 4-6 marks)
Laissez-Faire leadership with a hint of situational:(it aint salsa my g)
● Adrianna is not a teacher, she is an administrator. The professors will know how to teach.
● Adrianna’s duties are to make sure that the professors have the necessary equipment, if
needed, training, in order to deliver high quality lectures to their students.
● Professors will not enjoy someone else trying to direct them on how to carry out classes,
they have enough experience to know what they’re doing.
● As an administrator, Adrianna can ask for faculty input during certain decisions such as the
choice to reopen campus, revert back to online etc… She can employ an autocratic style
when stricter decisions are needed with no room for negotiation.
2.3 Leadership and management
Leadership Types
Leaders involve employees in decision making process and collaborate, where the hierarchy is
flatter than an autocratic leadership with decentralised decision making
Type of
Definition
Advantages
Disadvantages
Good for crisis management and
contingency
planning,
more
control over employees and quality
of work, quick decision making
and effective deadlines
Could lead to lack of
motivation amongst
workforce, possible
power culture, stops
initiative
and
creativity
from
employees,
no
delegation and there
is an avoidance of
discussion
with
employees
leadership
A leader with a tight
Autocratic
span of control and
(see image centralized
decision
under table) making,
where
employees have strict
rules and policies and
seldom
offer
their
opinions/ thoughts on
decision making
36
Democratic
Situational
Leaders
involve
employees in decision
making process and
collaborate, where the
hierarchy is flatter than
an autocratic leadership
with
decentralized
decision making
Motivational for workers as well as
giving them possible opportunities
of promotion, the collaborative
environment usually comes with
more solutions and a set of ideas,
two- way communication.
Slower
decision
making which can
become costly +
compromising
for
business,
more
disagreement on little
things which can
affect day to day
productivity,
can
become inappropriate
for urgent situations
This type of leader
believes that there is no
single leadership style
for all situations, hence
they change their style
according to what the
business and employees
need.
Practical and flexible, applicable to
a range of business industries for
all sectors, workers can benefit
from the mix of support and
authority
Knowing when or
how
to
change
according to every
situation might be
challenging and could
cause
confusion
amongst
the
workforce
because
they have grown
accustomed to one
style which can bring
inconsistency
in
productivity
and
quality.
37
Paternalistic
(Think Michael Scotts
from the Office) A leader
that believes he or she is
acting in the best
interests
of
its
employees. Those who
accept this style of
leadership are rewarded,
while those who don't are
at best tolerated.
Positive
atmosphere and workplace, open to
feedback, more commitment and
loyalty in the workplace which
leads to a lower labor turnover =
less HR costs
There are two types of
paternalistic leaders:
Communication
is
mostly
downward,
paternalistic leaders
can
become
too
authoritative
and
make poor decisions,
employees viewpoints
can become dismissed
which could lead to
less
promotional
opportunities and a
less
collaborative
workforce.
Negative: These are
leaders who view their
workforce as inadequate
and low skilled. They
control their every move
Positive:
These
are
leaders who view their
workforce as highly
capable and skilled.
Instead of controlling
them, they nurture and
develop them.
Laissez-faire These leaders delegate
(hands-off)
responsibility and tasks
to their employees and
the employees have
complete independence
and
freedom
in
completing the task in
whichever way they
want, as long as the task
is done with good
standards.
Good for creative companies (eg;
google,
instagram),
drives
innovation and employees can push
themselves into work enrichment
which brings many promotional
opportunities.
There is a lack of
guidance, so new
employees may feel
lost, lose control of
the operations, often
criticised for the poor
definition
of
management
and
leadership
38
39
2.4 Motivation
Motivational Theories
-
-
Maslow’s hierarchy of needs → Impacts love and belonging since employees redundant
→ Impacts on security as the workers feel no sense of job
security which is likely to drive their motivation low.
Pink
Herzberg’s
TOO LAZY TO TYPE BUT because there was redundancy, there is lower job security and therefore
lower motivation. The hygiene factor of Herzberg's two factor theory
-
Adam’s equity theory
Maslow’s hierarchy of needs
Catastrophic accident + recession led to redundancy, negatively impacting worker’s morale. This
relates to “Esteem” in the 5 levels of needs, specifically to lower confidence. Fear of further
redundancy will decrease the employee’s performance. Therefore, low motivation as a result of
failure to achieve the need of Esteem.
(Just an example)
Potential Questions
1. Outline 2 types of leadership styles
○
Autocratic leadership style is when a single individual holds the most power and
decision-making authority. Typically, this means that employees and those working for the business
other than the leader do not have a say in business decisions. This type of leadership style is most
common with a tall organisational structure. While PU is not entirely autocratic, Jim is turning into
an autocratic leader due to his controlling behaviour and since he “rarely consults anyone”.
○
A democratic leadership style is when employees are involved in the decision making
process but the leader still has the final say. This is beneficial because it motivates employees and
creates a sense of team-building. These are usually associated with project-based organisations. In
regards to PU, it is likely that a democratic leadership style is adopted in the research and
development departments like medicine research as these have projects where employees participate
in.
40
2. Outline 2 types of training
○
On-the-job training and off-the-job are the two most common types of training. The
former allows the employees to obtain applied knowledge and integrate more swiftly into the daily
working habits at their specific post. On the other hand, off-the-job training is done externally by a
professional trainer, which can provide more innovative training, but be less applicable to the
workplace of their specific company. When looking at PU, it is evident that the training was
effective especially when it came to the IT department as it improved the IT skills for many
lecturers.
3. Explain two advantages of part-time employees.
○
being an efficient way to keep costs down in areas where you don't yet need full-time
cover. increasing recruitment and retention of staff by offering family-friendly working practices.
When linking this with the case study it is evident that PU were trying to solve their cash flow issue
by letting 20% of their staff work part time (could also link to Shamrock Organization:
outsource/part-time job every secondary funct
4. Outline 2 ways the University could remove anxiety from the staff. May be phrase as
“increase morale”
○
Recently PU’s staff has been stressed due to reasons such as struggles with the new
system as well as job redundancy and unfair dismissals. In order to decrease staff anxiety and
increase employee productivity and motivation, PU can apply motivation theories such as Maslow's
hierarchy of needs, as well as Herzberg's theory of motivation.
○
Maslow’s hierarchy of needs is a hierarchy made up of 5 main components that should be
met in order for the employee to be motivated. It starts with the basic human needs in this order:
physiological needs, safety needs, and love and belonging. Then there are self esteem, and self
actualization needs. If PU applies the following components to their employees then they should
become motivated and less stressed.
○
On the other hand, Herzberg's theory is made up of motivators and hygiene factors.
Motivators help increase job satisfaction. For example, recognition and personal growth. Hygiene
factors are factors that dissatisfy the employees, thus it is important to improve them in order to
decrease job dissatisfaction.
○
Overall, using motivational theories could help improve employee motivation and morale
and reduce stress and anxiety from staff.
○
One notable area of conflict is between the head of the faculty of History, Jim
Summerfield, and the other faculty members. More specifically, Jim is lowering morale and
allegedly bullying staff in his faculty with autocratic behavior among many other problems. Jim is
adopting an autocratic style of leadership, which he likely prefers. However, this creates a conflict
41
because employees are not compatible with this leadership style as shown by the aforementioned
reactions.
○
There is a conflict between the teaching staff who became redundant and Adriana, the
president of PU. Adriana has made 10% of teaching staff and support staff redundant, while 20% of
staff were moved to part-time employment. Considering the economic recession, it will be hard for
these employees to get jobs. While the laid off employees may not be able to control becoming
redundant, Adriana would have faced backlash from the redundant employees.
○
Another area of conflict is between Adriana and the research staff. In the case study, it
states that certain research staff had anxiety because they were not involved in front-line research.
This creates conflict because Adriana does not want to have anxious staff as this reduces motivation
and productivity of PU. On the other hand, the research staff do not feel that they are achieving
mastery or doing purposeful work, which is the cause of their conflict against Adriana.
5. PU has a problem with its turnover. In the first six months of the year, 50 of its 500
employees left the company. What is the labour turnover for PU?
○
Labour turnover = (Number of workers who left / Total number of workers) × 100 = 10 %
6. Outline the process of dismissal
○
Inform the employee of the issues in writing. Conduct a disciplinary hearing or meeting
with the employee. Inform the employee of the decision in writing. Give the employee a right of
appeal. The Manager dismissing the employee must have a valid reason for this dismissal or else the
employee could take legal action. Such as Patricia Hughes in PU’s case
7. To what extent will revising the employment contract at PU improve the teaching staff’s
morale?
○
Links to motivators (financial rewards):
8. Explain how lack of motivation was responsible for high staff turnover at PU. (Lines 88-94)
○
Lack of motivation led to several faculty resigning in the Faculty of history department at
PU. This lack of motivation stems from the emotions of the employees such as low morale and
anger towards Patricias’s redundancies. Additionally, there is a lack of motivation because
employees lack autonomy and purpose, both components of Daniel Pink’s theory. This means that
employees are not intrinsically motivated because Jim’s leadership style does not allow them to
fulfill their autonomy and purpose goals since he acts like an autocrat. Consequently, “Despite few
job vacancies in the domestic economy”, the lack of motivation outweighs this and causes the high
staff turnover for PU.
42
9. Define Redundancy and state its one advantage and one disadvantage for PU [4 marks]
Redundancy refers to when a job, or a skill within a business is no longer needed due to changes in
the external or internal environment; either technological, social, ethical or legal. An advantage of
redundancy, for a business, is that firms will have a decreased cost as they no longer need to retain
employees who are redundant, PU benefits from redundancies as it reduces cash outflows; cutting
costs. But a disadvantage of redundancies for PU is that it has lead to job insecurities for the other
employees who have already been moved to a part time contract.
10. Examine the reasons behind employee turnover at PU, in reference to a motivation theory.
[6 marks]
Staff turnover at PU’s faculty of history is high, despite few job vacancies in the domestic economy.
The department head, Jim Summerfield, has been reportedly bullying other staff, this can be linked
to Herzberg’s two factor theory of motivation. Jim Summerfield’s bullying is a hygiene factor that
negatively affects employee motivation. Another hygiene factor that lead to anger and low morale
was the alleged unfair dismissal of Patricia Hughes, the unfair dismissal due to her criticism of
upper management may have lead to staff feeling like their voices weren’t heard, job insecurity and
no autonomy over what they say.
11. What is the effect of staff redundancy on PU’s brand image?
○
In the case study it is stated that “10% of teaching staff and support staff were made
redundant”. This shows that PU did dismiss employees due to redundancy. This ruins PU’s brand
image as part
12. List at least three attributes that PU’s mission statement is based on.
●
Inclusivity
●
Resilience
●
Commitment
13. Explain, with reference to PU, the purpose of the mission statement. (maybe this belongs to
unit 1)
Mission statement provides a clear direction for the business and what the business would like to
achieve in the future. Especially that PU objectives in the business plan were unrealistic and were
not achieved due to the disaster, the three attributes in the mission statement will enable PU to set
more realistic and achievable objectives.
43
14. Outline one advantage and one disadvantage of making the history and international
languages faculty redundant. (Might been an important question, possible that exam asks method
in which costs can be cut, perhaps presented as one of 2 options)
○
Redundancy involves the termination of an employee contract due to their job no longer
existing or the employer not being able to afford the employee.
○
One advantage of PU making these faculties redundant is that it could decrease costs.
The number of students choosing these subjects has been continuously decreasing and is predicted
to continue decreasing (146-148). This could imply how the revenue would be much lower than the
costs, meaning that the costs involved with the department aren’t being compensated or aiding in the
overall revenue of PU. Hence, removing these faculties could be better for PU’s cash flow and could
possibly resolve the cash flow problems they’ve been suffering since 2021/2022 (line 57 and line
69). The fact that a redundancy is occurring means that cutting costs can increase the probability of
PU’s survival.
○
However, seeing that a recession is currently undergoing (line 17), making two faculties
redundant could impact the morale of the remaining employees. Recessions are uncertain times
where employees will be worrying about their job security, this will be further encouraged once PU
removed the history and international language faculties. Following Maslow’s Hierarchy of Needs
(safety needs) and Herzberg’s two-factor theory (hygiene factors) - job security is essential for
employees motivation. Demotivated employees will be less efficient, productive and may even
choose to leave PU, which had been the case within the history department (line 87-88).
15. Outline two impacts of online learning for PU (30-35 / 70-80) [4]
○
The impacts of this were mostly negative, leading to both student and teacher
dissatisfaction - decrease in quality of teaching and limited access to lessons.
○
Many lecturers found it difficult to teach without face to face interactions and had
inadequate IT skills to deliver high quality online courses, these did not meet their expectations and
they demanded compensation. There was anxiety among the teaching staff and some of the research
staff who were not involved in front-line research.
○
In addition to this, many students were dissatisfied with the online lessons as they lacked
the appropriate equipment to follow online lessons. Despite the fact that the government and several
computer manufacturers aided in the provision of IT equipment for students and employees, there
were still substantial shortages, particularly among economically disadvantaged pupils.
16. Outline two disadvantages of online-learning for PU (30 - 39) [4]
○
One disadvantage of online-learning for PU is that their staff's low level of technology
skills may lead to communication problems with students, decreasing the quality of PU's lessons.
44
Another disadvantage of online-learning is that it may have an effect on teachers' mental health,
evidenced by the anxiety experienced by staff while teaching online. This could contribute to a
decrease in motivation and in the quality of teaching.
17. With reference to PU, describe one advantage and one disadvantage of Jim’s leadership
style [4] (could also refer to a power culture - HL)
○
Jim’s leadership style would appear to be autocratic. An advantage of this would be that
Jim is able to make decisions quickly as he does not consult with other employees. This may mean
that Jim can decide upon suitable resources and examination content that lecturers should use,
quickly, increasing efficiency and allowing time to be devoted to other areas of the faculty. On the
other hand, a disadvantage would be that, as Jim does not consult employees on decisions, this has
already led to lower morale and accusations of bullying made against him. This can lead to
damaging the reputation of the university, which already has controversy with ethical issues and can
increase labour turnover, as shown in the case of Patricia. This will be costly for PU in both legal
fees for a court case and future recruitment costs to replace employees.
18. With reference to PU, explain the differences between leadership and management [4]
○
Jim would be an example of a manager in the history faculty. Jim’s role would involve
setting objectives and planning and organizing resources to meet these objectives e.g. improving
student satisfaction rates in the faculty. He would also be responsible for directing and motivating
employees, however this appears to be not as successful due to low morale and dismissals.
Leadership is about taking responsibility for strategic decisions and setting the long-term vision. In
PU´s case, Adriana would demonstrate leadership as she would be considering strategic options
such as opening a new campus and how to reduce cash outflows. Adriana must make these decisions
while considering the impact on stakeholders and alongside the board of trustees.
19. Analyze the leadership style displayed by Adriana at PU [6 marks]
It is unlikely for the final exam to ask for analysis with very limited hints/behaviour.
​Time devotion, influence , risk bearing , tasks , vision
3. With reference to PU, describe an advantage and disadvantage of the previously planned
improved pay structure [4]
○
An improved pay structure could have been potentially motivational for lecturers who are
extrinsically motivated. This can help meet their psychological needs outlined by Maslow by
improving their access to basic needs as well as satisfying Herzberg’s hygiene factors. This may
increase the quality of teaching as lecturers feel appreciated and reduce labour turnover. However, a
disadvantage of an improved pay structure could be the costs involved in doing so, as well as
possible issues with equity. It is unclear what an improved structure may look like, this could mean
some lecturers get paid more than others depending on performance, in such a case, employees may
45
feel undervalued and that their input does not match the output, as outlined in Adams Equity theory.
This could cause conflict within PU.
4. With reference to PU, explain why Jim should be dismissed instead of made redundant[4]
Jim should be dismissed as his behavioural conduct is basically bullying other employees. Unsafe
behaviour that threatens lives or equipment would be regarded as serious misconduct, as would
confidentiality breaches and therefore be a well-grounded case for dismissal. On the other hand,
redundancy would not apply to him as redundancy is another lawful reason for dismissing
employees. Redundancy is different from other reasons for dismissal as it is perfectly likely that the
employee has done nothing wrong and that their work is up to standard. The company simply needs
to lose some roles as a result of a recession or reduced demand.
5. With reference to PU, explain an advantage and disadvantage of having a high staff
turnover [4]
○
A possible advantage of a high staff turnover is that new employees can bring new ideas
and approaches into the university. Younger lecturers may arrive with new innovative teaching
approaches that may improve the quality of learning for the students and increase their satisfaction
levels. This will help boost the university's reputation. A disadvantage of a high staff turnover is the
recruitment costs needed to replace the lecturers that have left. This would involve the costs of
advertising as well as interview. PU is currently losing revenue and struggling with cash flow,
therefore continued high staff turnover, would represent a large issue for the university as they may
not be able to afford to attract high quality lecturers, damaging their reputation.
6. Apply Pink's motivation theory to PU [6]
○
Pink's motivation theory outlines autonomy, mastery and purpose as the three factors to
motivate employees. It would appear that in Jim’s faculty, there is a lack of autonomy due to his
autocratic leadership style in not consulting with employees. This lack of autonomy can demotivate
employees as they may feel their opinions are not valued and indeed has resulted in low morale
within the faculty and an employee being dismissed. It can be argued that through training and
upskilling, lecturers have had the opportunity to develop their skills and knowledge of using online
platforms for teaching. A planned expansion of the IT training programme would give further
opportunity to improve skills and the quality of teaching being delivered. Teaching in itself can be
motivating for lecturers and provide them with purpose as they know that they are making a
difference to the lives and future careers of their students. This can lead to higher quality of lessons
and experiences for the students as the lecturers are keen for the students to do well.
7. Using motivation theory, analyze the motivation of PU employees [6]
According to Maslow’s hierarchy of needs, it could be argued that security needs and esteem needs
are not being met. Due to the redundancies of lecturers and switching to part-time employment for
some, lecturers may be concerned about their jobs, this may be demotivating and negatively affect
46
the quality of their lectures. Furthermore, the allegations of bullying and low morale in the History
faculty, indicate that esteem needs are not being met, some lecturers have left, and others may
follow if the situation with Jim is not resolved.
According to Pink's motivation theory, it can be argued lecturers are motivated as they would likely
feel a sense of purpose. Training the next generation of teachers can be motivating for lecturers and
provide them with purpose as they know that they are making a difference to the lives and future
careers of their students. In addition, the training of lecturers could be considered as supporting
them towards mastery as they have the opportunity to develop their skills and improve which can be
intrinsically motivating.
It can also be argued that some hygiene factors are not in place, according to Herzberg’s two factor
theory, good working conditions, good relationships with colleagues and job security would be
considered important to be in place. These seem to not be the case giving suggestions of racist and
sexist attitudes, bullying and low morale in the History faculty, as well as the redundancies. These
may all damage the reputation of the university and further increase labour turnover.
8. Explain how innovation in communication technologies may impact on communication
within PU [6]
PU would have used some online communication programme for the lecturers to teach their lessons.
The training in IT skills could improve communication both between lecturers and management as
well as between lecturers and students. The contamination has led to the need for training, and this
has upskilled lecturers, it could result in faster communication if they can communicate via online
communication tools/software and lead to more efficiency. Furthermore, it may mean it is easier for
students to ask questions or arrange meetings without having to have a physical appointment,
improving the student experience. Furthermore, innovation in communication technologies may
mean that lecturers no longer need to travel around the world for conferences, as there may be more
opportunities to join in online or have virtual conferences. PU could perhaps lead the way with this
and host virtual conferences for lecturers, this could help differentiate them further from rival
universities and save them costs as lecturers will not need to leave.
9. Apply Handy’s shamrock organization to PU [6]
Handy argued that organizations must adapt to changes in the business environment in order to
survive and thrive. PU has a professional core; they have many full-time lecturers who teach the
students and aim to provide high quality lessons to provide the best learning experience for the
students. Adriana needed to make 10% of the employees redundant to cut costs in the face of
dropping fees from the contamination. Due to this, other employees are fearing for their jobs, which
may impact their performance. In addition, the employees within the various research departments
are also full-time core employees, whose work on research has added a unique selling point for PU
and helped them attract funding and potentially save lives such as new medicines being developed.
PU have had 20% of staff moved to part time employment, this was a cost saving exercise which can
support PU in managing their cash flow and they may only teach a limited number of classes.
However, as it appears that this was a forced move from PU, the part time lecturers may be
47
demotivated by this as they may now not have enough income to meet their needs and wants and
this could negatively impact the quality of lessons.
10. Explain two possible training methods PU may have used when expanding their IT
training programme [4]
PU may use on the job training by offering training on the specific software that the university is
using for online teaching. This will be useful as it is specific to the needs of the lecturers and could
be delivered by a member of the IT department who may be a specialist in this area, thus saving
costs of having to hire someone external.
○ PU may use off-the-job training to train the lectur ers, if they are using a particular software, they
may wish to have the lecturers attend a session where they can learn about the software from
specialists. This would result in a higher quality of training and increased skills of the lecturers who
could deliver more effective online lessons.
○ On-the-Job training can be used in the form of internships as a way for employees to practically
learn skills needed for their IT training programmes. This can boost employee relationships as the
new employees will get familiar with their working environment and start developing relationships
with other senior employees (mentorship style). However, this can be unproductive for the business
as it reduces working hours for current employees and the new employees may disturb working
practices with queries or need for assistance.
11. Explain an advantage and disadvantage to PU of expanding their IT training programme
[4]
○ PU may use off the job training to train the lecturers, if they are using a particular software, they
may wish to have the lecturers attend a session where they can learn about the software from
specialists. This would result in a higher quality of training and increased skills of the lecturers who
could deliver more effective online lessons. However, increased training will be both time
consuming and expensive for PU. The lecturers may lose a day or more attending sessions on
developing their IT skills for online teaching, however when the facilities are refurbished, these
skills may not be necessary anymore. This presents a possible opportunity cost for PU, who with
falling revenues, need to spend their budget wisely. How work patterns, practices and preferences
change –
12. With reference to PU, explain an advantage and disadvantage of teaching online lessons [4]
○ An advantage of teaching online lessons is that the lecturers could save travel costs as they no
longer need to travel to work and can work comfortably from home and plan their schedules. This
could free up money that they could spend on their own needs and wants to satisfy them. These
factors can be motivational, such as increased autonomy, according to Pink's motivation theory. A
48
disadvantage could be that the lessons may not be as productive, without face-to-face contact, it may
be difficult to assess if the students are engaged in the lesson and some students may not be able to
attend due to not having a computer or internet problems. This will hurt the quality of the lessons
and could negatively affect student performance and the future reputation of the university.
13. Explain the impact of online teaching on two stakeholders [4]
○ One stakeholder affected would be the lecturers, the lecturers could save travel costs as they no
longer need to travel to work and can work comfortably from home. This could free up money that
they could spend on their own needs and wants to satisfy them. These factors can be motivational
such as increased autonomy, according to Pink's motivation theory: However, the students may be
negatively impacted as they may not receive the same individual attention online and may not feel
as engaged in the lesson due to a lack of face-to-face contact. Some students will also not be able to
join as they don’t have computers or may have internet issues and may struggle to pass the course
due to these issues, impacting their future careers. Some students may even choose to leave to get
face to face teaching from PUs competitors.
14. Explain possible internal and external factors that may influence the human resource
planning of PU [6]
○ One possible internal factor is the budget of PU, they will only be able to spend a certain amount
on their recruitment costs, this will impact how many lecturers they can hire, what salaries they can
offer and training costs. PU may find that they cannot hire as many employees as needed especially
as they have falling revenues to date. This could result in PU not having enough expertise to meet
the standards their students require and are paying for.
One possible external factor is the current recession, this could also alter their human resource
planning as PU may anticipate less demand for their university courses as students may seek
cheaper fees. This may mean PU requires less employees. Their state fees are competitive, but we
don’t know that they are the lowest. They may also need to raise the fees if revenue continues to fall.
However, it is possible that a recession may lead to an increase in the supply of lecturers as
historically teacher/lecturer applications rise in a recession due to being seen as having more job
security, however PU are not state operated so this could prove to not be the case.
15. With reference to an appropriate motivation theory, explain why the staff in the history
department have low morale [6]
○ Herzberg’s two-factor theory suggests that there are two types of needs for an employee within a
firm. Lower needs are also known as hygiene factors, they are classified as requirements for a job to
have, employees already expect the job to take care of such factors. Factors include acceptable
salaries/ wage rates and job security. Here, we can note that PU has a problem addressing the
hygiene factor of job security. Adrianna found anger within the employees on Hughes's unfair
dismissal and fear of further redundancies. This shows that the employees have a perception of low
job security under the current circumstances of PU, outlining that the hygiene factor is not met.
According to Hertzberg, the addressing of hygiene factors by managers or employers will not
necessarily increase the motivation for employees, but if left unattended will result in job
49
dissatisfaction and severe demotivation. In other words, unless the hygiene factor of job security is
met, motivating factors (factors that genuinely make the job enjoyable/exciting) such as job
enrichment through increased training for IT skills for lecturers won't be effective at increasing or
maintaining motivation
USING PINK-
Unit 3 - Finance and Accounts
Potential Questions
1. Evaluate the strategies Peacewick University used to tackle cash flow problems
●
“(L.57) reduce outflows, made 10% of teaching staff and support staff redundant, 20% staff
moved to part-time employment”
●
+ reduce cash outflow immediately, part time employment (lower fixed/variable costs, don't
have to pay full benefit)
50
●
decrease motivation (needs theory, social needs not fulfilled as staff are losing coworkers,
less opportunities for teamwork), part-time employment (less stable relationship with employee =
worker less motivated = productivity decreases)
2. Sources of finance used to fund for their student accomodation/government grant
Bank loans (loans that do not have to be repaid for at least one year), as cash-flow is a major
problem, bank loans won't affect it rn; + fixed interest, - interest payment, as the student
accommodation would be a long term need a long term finance is smart. As this is during recession,
bank loans have a lower rate of interest.
3. Identify and explain two potential sources of finance that PU could use to refurbish teaching
facilities that were damaged by the accident
●
“(L.23) will remain unusable for at least two years”, same answer as questions above ?
●
Retained profit : “(L.135) the successes of some of the research projects suggest further
growth and investment in this areas of the universities activités, areas included in PU long term plan
are refurbish teaching facilities”, use money generated from the research projects and invest in
teaching facilities
●
！Venture capitalists or business angels are likely to invest in PU due to their positive brand
image, ethical objectives, and potential for further growth.！
Our teacher said that this point ↑ (Venture capitalist) isn’t viable for PU, and will not give the
application marks. Instead one source of finance can be long term loans.
4. Identify and explain two potential sources of finance that PU could use to open a campus in
country B?
Same answer as last question
5. What is capital expenditure?
Spending on fixed assets
6. Explain how the cash flow problem in 2021/22 has influenced PU’s marketing Strategies.
(Lines 56-61)
“Adriana decided to maintain PU’s aggressive marketing strategies”, cash-flow problems did not
influence the marketing strategies
7. With reference to PU, outline two benefits of capital expenditure in the development of
technology and medicine faculties
Capital expenditure is the spending on fixed assets (eg building)
51
¿Could it be related to the funds UP got? Because if it is, the answer is practically the same as the
case says. If not, UP did not use that much capital for the development.
8. Describe one capital expenditure and one revenue expenditure for PU (lines 56–59).
One Capital expenditure that PU is considering is moving to country B
One revenue expenditure that PU uses on day-to-day basis are utility bills and payment of
employees
9.
Explain
the
importance
of
managing
cash
flow
for
Peacewick
University
10. State two revenue streams for PU
Potential Tools and Formulae in Question
➔
Investment Appraisal
➔
“Day to day issues” - Working Capital problem?
52
➔
Ratio Analysis
➔
Profitability ratios
➔
Gross profit margin
➔
Net profit margin
➔
Efficiency ratios
➔
Return on capital employed
➔
Liquidity ratios
➔
Current ratio
➔
Acid test ratio
➔
Stock turnover ratio
53
Cash flow forecast template
Cash Flow Forecast
January
February
March
April
May
June
Cash in
Cash Sales
Total receipts
(Inflows)
Payments
Rent
Salaries
Total Payments
(Outflows)
Net cash Flow
Opening Balance
Closing Balance
54
Income Statement/Profit and Loss Account Template
Sales Revenue
Cost of Sales
Gross Profit
Expenses
Operating Profit
Interest
Tax
Net Profit after Interest and Tax
Dividends
Retained Profit
55
Balance Sheet Template
Fixed Assets
-Land
a
-Machinery
b
Total Fixed Assets
(a+b) = 1
Current Assets
-Cash
c
-Debtors
d
-Stock
e
Total Current Assets
(c+d+e)= 2
Current Liability
-Short-term Borrowing
f
-Creditors
g
Total Current Liability
(f+g)= 3
Long-Term Liability
Bank Loan
h
Mortgage
i
Total Long-Term Liability
(h+i) = 4
Net Assets
1+2 - (3+4)
Working Capital
TotalAssets - Total Liabilities
ADD Total Current Assets - Total Liabilities
56
Potential Questions
1. The board of directors is trying to decide which of the strategic choices facing the firm they
should adopt. There is insufficient support from the board of directors for an expansion of the
University, so the options under consideration are:
● Sell PU to an Indian multinational corporation considering a takeover
● Expand to the Country B
● Refurbishing the campus
To help the board with their decision, Arianna (the marketing manager) has prepared the following
data showing the expected revenues for each option.
Cost ($000)
Option
50
Sell PU to an Indian
multinational
corporation
considering
atakeover
75
Expand to Country B
100
Refurbishing the
Campus
Value of Sales
Probability
(%)
Average annual
return 2006-2016
($000)
100
315
High enrollment
35
500
Average
enrollment
40
375
Low enrollment
25
220
High enrollment
45
520
Average
40
350
15
280
enrollment
Low enrollment
57
(a) Define Multinational [2]
A company which has its headquarters in one country, yet has operations in other countries other
than its home country. (Business activities spread among at least 2 countries).
(b) Identify two additional sources of secondary data that will help supported decision about the
most appropriate option. [2]
-
Government records, including census data, demographic data, surveys.
Market intelligence analysis reports
58
(c) Construct a decision tree showing which option is best on financial grounds. [6]I forgot to put
the probability next to the different enrollments (high, average, low)
59
(d) Taking into consideration the external opportunities and threats in Appendix 2 and the
information given in the table above, evaluate whether PU should refurbish the campus. [10]
(Can someone please solve these questions !!!!!!!)
ok
______________
1. Analyse the reasons behind the cash flow problem issues at PU [4 marks]
PU has been facing a cash flow problem primarily due to the significant reduction in student
applications to the university due to the explosion that has contaminated most of the main
facility. Student application rates have fallen as PU’s facilities have been significantly
damaged and remain unusable for 2 years, additionally the prospect of holding virtual
classes is a demotivator for most students and staff. Many international students did not
return to complete their courses at PU either as the residential services had been rendered
unusable as well.
Another factor that could have resulted in cash flow problems is the student demand for
compensation when the courses did not live up to their expectations. As PU had to switch to
online classes, it lacked the necessary IT equipment to support online classes, and it’s
teachers did not have the adequate level of skill to host online classes either. Teachers also
found it difficult to teach during online classes, compared to face to face classes.
2. Discuss any two sources of finance available at PU [4 marks]
1st:
3. After a few months, the marketing campaign shows signs of working, and student
enrollment is up. The number of students will be better than it was before the explosion.
But, the university is still in a competitive market. Janice, the head of marketing, has been
collecting secondary market research about enrollment to calculate the market share the
60
university has and to see how the market is evolving. They are not market leader, but would
like to be it in the next 5 years.
Table 1: Sales in (000’s)
Peacewick
2021
2,500
2022
2,400
St. Mary’s
1,200
1.300
Leighton
900
1,400
Chester
5,000
5,200
Windfield
3,500
3,900
But, this increase has caused some issues for the university. Some of the buildings are still not
decontaminated, so they will have to build a new facility. The university has thought about two
different options as sources of finance. First, they have considered taking out a long-term loan that
they will pay back over 20 years. The interest rates are low due to the economic recession. Their
other option is asking for donations. They will run a campaign asking former students and generous
donors from the community for money to start construction. However, the cost of the building is
high and the board of trustees is not sure how long it will take to raise the money.
The university does not want to turn any students away due to the lack of space for them on
campus, but they also do not want to be in debt for many years because they do not know what the
future will bring.
Using the Peacewick University case study and additional information, recommend which source of
finance PU should choose.
[10]
PU should elect to use a long term bank loan, repaid over the course of 20 years as their source of
finance. A long term bank loan assures a steady stream of money into the business in order to carry
out essential business activities while the new facilities are being constructed. A bank loan would
assure that money to begin construction is gathered fairly quickly in contrast to asking for donations
from the community. As mentioned before in the case study, Country A is undergoing an economic
recession, thus members of the community may be unwilling to donate to the university.
Additionally, interest rates are low thanks to the recession, a time period of 20 years allows for
sufficient time for the external environment to change as well, as perhaps within the 20 years PU
will be able to return to it maximum efficiency with all staff and classroom facilities being utilised,
this can result in higher amounts of revenue being generated as well which would allow for the easy
payment of the bank loan. The case study also mentions that student interest in PU is high, thus the
marketing campaign has shown some success, but application rates are low. This can be attributed to
the limited facilities caused due to the explosion, and the potential online classes which is one of the
reasons for decreased student and staff satisfaction.
61
Unit 4 - Marketing
BCG Matrix
BCG Matrix of Faculties in PU
Star
Question Mark
-
IT, Medicine, Business, Electronics,
Engineering, Media (lines 4-5)
_
(Maybe last 4 in cash cow)
Cash Cow
-
IT and Medicine
Dog
-
History, languages and other traditional
courses (line 5)
Potential Questions
1. Explain a suitable promotional mix that PU might use to attract new students.
Below the line and above the line(promotional messages through mail, open days,
incentives like scholarships)
-
7Ps of service marketing (more focus on people, process and physical evidence)
-
Can employ guerilla marketing
2. Describe two features of the school’s marketing mix (line 60).
Promotion: Peacewick has invested a lot of marketing expenditure. This is so that they increase
brand awareness, maintain their market share, and attract and persuade new students.
Price: Price discrimination: international students are charged higher fees than national students.
This is because it is the main source of revenue for the business, and clearly (linking to promotion)
if this is the case, promotion in these foreiugn countries must be on a very large scale.
3. Outline one advantage and one disadvantage of PU using an aggressive marketing strategy
(lines 60 to 62). [4 marks]
62
One advantage of using aggressive marketing strategies is that these marketing strategies ensure that
the target market (potential students) will be aware of PU, possibly increasing the number of
applications. This is essential as recently the number of PU students applying and studying has
decreased (line 52 to 54 and 78), which can tremendously impact their revenue, as being a
university that provides a service PU is dependent on the student fees. Additionally, as other
universities don’t provide such an extensive budget for marketing (line 61), there is a greater
opportunity for PU to stand out from their competito rs.
However, having suffered from cash flow problems, the aggressive marketing strategy may be a
questionable idea. The reason for this being that the aggressive marketing strategies are quite
expensive, hence increasing the outflows which can further impact the cash flow problems.
Additionally, the marketing strategy is a gamble, although there is a greater assurance that students
will be aware of PU, there is no guarantee that applications will increase (77 to 78). And hence,
there is no guarantee that these costs can be late r compensated from the student fees.
4. Explain the external factors (reasons) that negatively affected PU’s marketing forecasts
An external factor that may be negatively affecting PU’s marketing forecasts is the lasting damages
from the chemical explosion in September 2021. Despite PU’s aggressive marketing, the negative
effects that the chemical explosion has had on PU’s campus mean that many fewer students are
willing to enrol into the university knowing that they will receive a lower quality service.
An external factor that may negatively affect PU's marketing forecast is the pressure they are
currently facing from political activists and media. In spite of the efforts of Adriana's aggressive
marketing campaign, PU is currently facing significant backlash in national media for their failure to
meet some aspects of their mission statement as well as having some controversial figures be
appointed to their board of trustees and invited as guest speakers.
5. Explain methods of CSR strategies that could improve PU’s stability.
Corporate social responsibility (CSR) refers to the value, decisions and actions that impact society
in a positive way. It is about an organisation’s moral obligations to its stakeholders, the community,
society as a whole and the environment.
Labour relations can help motivate Jim to work more efficiently and be more friendly to students
and his coworkers
6. Outline the importance of physical evidence for PU’s marketing strategies (4 marks)
Physical evidence refers to the tangible aspects and the customers’ personal experience of a service.
For PU, physical evidence is important because firstly, if they go ahead with refurbishing the
teaching facilities damaged by the accident, (line 138) it is key that students have a positive
experience, which benefits PU’s reputation.Secondly, as PU received external funding to develop AI
and medicines, physical evidence is important for enrolled students to report to unenrolled students
on how the environment of these faculties is. This is important because a positive experience of the
63
environment improves PU’s reputation, and potentially raises the number of students again. (lines
42-45)
7. Explain how the recession may have influenced PU’s marketing strategy of processes
Process refers to the operations involved in delivering a service to customers, whilst people refers to
anyone directly or indirectly involved in a corporation. Due to the explosion if the chemical plant,
PU had to shift to online learning, this causes a change in the process of delivering the services to
customers
8. After a few months, the marketing campaign shows signs of working, and student enrollment is up. The
number of students will be better than it was before the explosion. But, the university is still in a
competitive market. Janice, the head of marketing, has been collecting secondary market research
about enrollment to calculate the market share the university has and to see how the market is
evolving. They are not market leaders, but would like to be in the next 5 years.
Table 1: Sales in (000’s)
Peacewick
2021
2,500
2022
2,400
St. Mary’s
1,200
1.300
Leighton
900
1,400
Chester
5,000
5,200
Windfield
3,500
3,900
But, this increase has caused some issues for the university. Some of the buildings are still not
decontaminated, so they will have to build a new facility. The university has thought about two
different options as sources of finance. First, they have considered taking out a long-term loan that
they will pay back over 20 years. The interest rates are low due to the economic recession. Their
other option is asking for donations. They will run a campaign asking former students and generous
donors from the community for money to start construction. However, the cost of the building is
high and the board of trustees is not sure how long it will take to raise the money.
The university does not want to turn any students away due to the lack of space for them on
campus, but they also do not want to be in debt for many years because they do not know what the
future will bring.
a. Define the term secondary market research.
[2]
Secondary market research can be defined as studies conducted on the target market, via using
already published sources such as the internet, research papers, similar market research conducted
by other businesses as well. It is the analysis of data that already exists and has been collected and
processed
b.i. Using Table 1, calculate the market share for PU in 2021. (show all necessary workings) [2]
Total market size = 2500+1200+900+5000+3500
= 13,100
PU market share = (2500/13100) * 100= 19%
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b.ii. Using Table 1, calculate market growth from 2021-2022 in the not-for-profit education section.
(show all necessary workings)
[2]
PU market share in 2022 = (2400/14200)*100 = 16.9%
¿Is this finished? It seems for me that it would be needed to do 16.9%-19%= -2.1 cause it didn’t
grow and it decreased.
c. Explain one advantage and one disadvantage of being market leader for PU.
[2]
Advantage:
● As a market leader, PU’s reputation will be held in high standards. Students are more likely
to apply to PU as well. This can also be used in advertising.
● Additionally, as PU is a market leader it may get away with charging a premium price.
Being a market leader and a higher price can work to increase the perceived value of a
degree from PU, thus further reinforcing it’s reputation as a créme de la crop university.
● They are also able to set the prices for other businesses to follow (price leadership).
Disadvantages:
● Too much attention on being a market leader could take away focus from main business
objectives.
● Pressure on staff and management will be high as well as they have to be the best of the best
as well; would result in lots of stress.
● May be accused of predatory pricing techniques (trying to outsell competitors to gain a
larger market share).
Unit 5 - Operations Management
Potential Questions
1. Using the force field model evaluates the spending on R&D for a university like PU.
2. Examine the impact of implementing sustainability on PU. Sustainability = increased brand
competitive advantage, attracts environmentally responsible consumers, improves opportunities with
the government and other companies/investors as they may want to support an organisation who are
environmentally aware, increases employee retention (decreases labour turnover) and attracts quality
employees. However, there may be substantial initial expenses, for instance, the cost of solar panels.
Backlash faced by media and pressure groups if they do not conform to their sustainable brand
image, may be difficult to continue the momentum of change.
3. Evaluate the methods used by Adriana in managing the crisis caused by the accident. new2
4. Which typ​​e of sustainability (triple bottom line) does PU’s former decision to use renewable
resources fall under? - environmental
65
5. Describe two disadvantages of PU’s external environment.
●
●
●
●
Type of innovation
Capacity utilisation
Relocation
Contingency and crisis management
1. Explain with reference to PU, the impact of providing lectures online.
2. Why is being socially responsible important for PU?
○
Being a socially responsible company can enhance a company's image and build its brand.
This can result in a greater likelihood of receiving government grants, private investors, and other
external financial donations, especially since PU provides education.
3. Evaluate the effectiveness of the measures PU has adopted in restoring its image?
○
PU started a market expenditure plan in order to restore their image. They faced problems with
some of their investors and staff such as the professor Di gad, as well as their investor Mohammed
mass. PU decided to cut them off in order to regain a good public image. Although this would result
in a cut towards their financial aid from the investor, it will give them a good public image which is
still a starting point for their comeback in mass.
4. Evaluate the impact of teleworking on PU. (6)
○
Teleworking is referring to the fact that staff and workers work from home. In this case, due to
the catastrophic explosion, the teachers, students, and researchers are demanded to study online and
they have online courses. The disadvantage of learning online is that the teachers could not be able
to maintain the quality of teaching due to inadequate IT skills. Furthermore, they experienced
anxiety while teaching online, which will cause a reduction in the motivation for the teachers.
○
The students who took online classes complained about the teaching quality of the lessons, and
that they do not understand the lessons compared to when they had face-to-face learning. This will
potentially make the students lose interest in the school when the teaching quality decreases.
Researchers who participated in the university were not allowed to conduct experiments on the
campus, which is a restriction for the research, and they might want to leave the school, this could
be a big problem for PU.
5. With reference to PU, describe what an organisational culture is. (4)
6. Describe the culture that exists within PU’s Faculty of History using Charles Handy’s model
of organisational culture. (4)
Describe the culture that exists within PU’s Faculty of History: The culture at PU, and more
specifically the history faculty is a task culture. There is autocratic leadership by Jim Summerfield;
66
everyone is assigned tasks. None of his subordinates are consulted when decisions are being made.
Everyone’s place in the hierarchy is clearly established and they are expected to carry out their roles
only. There is no room for creative thinking and other entrepreneurial traits. There is little to no
teamwork.
7. Explain the role of ethics for PU (4)
○
Ethics refers to the moral values and judgments that society requires the business to consider
for the operation. They determine decision making. The role of ethics is fundamental for every
business since it ensures that the business can gain trust and reputation from the community, and
good brand image and reputation can boost the business’ success. Operating as a university in the
education market, the role of ethics is extremely essential for PU, they can use their role of ethics as
a marketing strategy for the university to increase their brand image and reputation in the market.
Ethics also provides a guideline/basis for how staff should interact with internal and external
stakeholders. The ethical code of conduct is a document detailing rules on staff’s behaviour, which
is formulated considering the ethics the leaders follow. It is also important for PU to create a
healthy, efficient workplace that motivates any teachers and staff. Ethics are used to set ethical
objectives which are targets based on the moral code for the business. They may be expensive in the
short-term, but they can result in substantial benefits and attract ethical customers.
○
The case of Patricia revealed that the school is currently facing poor quality of equality policies
which are not being controlled or not being sufficiently imposed, therefore the school needs to
regain their equality policies if they want to continue to motivate other teachers and preserve their
reputation. This could be done in the form of campaigns, ethical marketing targets, redrafting of
equality policies, updating terms and moral values or teacher training with the aim of boosting
ethical objectives.
1.
Explain how PU’s objectives may Have changed in response to changes in internal and
external environment (6)
2.
With reference to PU, identify two sources of conflict in an organisation. (4)
○
Line 90 to 100: A staff member has been reportedly behaving in ways which do not conform
with PU equality policies and moral values. Jim Summerfield has been accused of being racist,
sexist, ```````````controlling and bullying others. He has taken an autocratic approach to his
department leadership. However, he is a very well renowned historian who brings a great brand
image to PU as an experienced and qualified historian and manager. Adrianna is experiencing
conflict in whether to fire him or keep him in the business and attempt to confront him about his
attitudes. However this may upset other members of staff and create conflict.
67
○
Line 50 to 55: PU has decided that for 2022/23 it will adopt a discriminatory pricing strategy
in terms of their fees. For international students they are asked to pay more. This could create
conflict between the managers, owners and board of trustees, who would be in favour of this
strategy to boost profit and fix cash flow issues. However, this may upset their customers (students)
as they may feel discriminated against and injustice towards the prices they have to pay. This can
also cause a reduction of students because international students may feel discouraged to continue
their studies at a higher price.
3.
With reference to PU, explain what a mission statement is? (4)
4.
Identify two advantages and disadvantages of PU having a mission statement. (4)
5.
With reference to PU, explain two elements of a business plan. (4)
●
6.
With reference to PU, explain the interests of the two stakeholders (4)
7.
With reference PU, explain the effect of the accident at the chemical plant on two
stakeholders (4)
8.
○
With reference to PU, explain an advantage and disadvantage of internal growth ( 4)
Advantages
i. Revenue stream
ii. (diverse market segment available)
iii.
○
New markets = new opportunities
Disadvantages
i. Cash flow problems, therefore internal growth would be a risky strategy
ii. The internal growth is very slow therefore it would cause a lot of problem to the business
Iii. Spreading risks
Iv. However, Moving to other countries may be influenced by exchange rate, fees and cultural and
linguistic differences which need to be considered within the teaching.
9.
Using Herzberg’s two-factor theory, examine the possible effects of the economic recession
and the disaster at the chemical plant on employee motivation at PU. (8)
Questions:
68
1.
Disadvantages and Advantages of each plan -[ feasibility of each option](Refurbish vs
country B)
Language barriers for international students
Job security/ redundancies/ morale
-
Cutting down costs reduces cash flow
Investment appraisal
69
Possible 10 Mark Questions
1.
The clash between the reduction of resources like employees and ecological sustainability,
you can argue with or against one of them
2.
Discuss the motivation of the employees at PU, refer to 2 motivation theories
3.
Discuss the decision of retiring the entire History department/ at least the head leader
4.
Explain 3 management issues PU is facing right now..
5.
Explain the impact of poor management of these particular issues.
6.
Recommend a leadership style that may aid PU in effectively managing the conflict in the
Faculty of History.
7.
Examine the feasibility of PU achieving its long term plan.
8.
Evaluate whether PU should continue to offer subjects such as history and international
language, or stop these courses and use the savings for expanding the Medicine and IT faculties.
Sustainability Issues (economical, social, environmental)
-
Three pillars of sustainability
-
Trade on carbon points
Potential Sustainability Issues Solutions
-
Look for new investors (cash problems[invest in training])
-
Change in leadership
-
Change organizational structure
-
Methods to improve cash flow(get more income, reduce outflows)
-
Changing name (bad reputation)
-
Ecommerce (online classes[evaluating pros/cons])
70
-
HRM problem
-
Ethics (underlying theme of the case study[positive/negative])
-
Stakeholder Conflicts
-
CHANGE
-
Organisation structure (too flat/more delegation)
-
Mission statement (resolution)
-
Crisis Management (HL)
-
Ishikawa / Fishbone Diagram (HL)
-
Forcefield (Recommend if the History department should remain)
-
FFA on whether PU should open a new campus in Country B.
Driving Force:
Restraining Force:
-
Growth (Ansoff) Matrix
Possible other questions
(idk if they have been added already but these are some of the questions that i have : )
1.
With reference to PU, explain two forms of industrial action employees may take in the
History faculty [4] ( HL only)
2.
With reference to PU, describe two possible stakeholder conflicts that may occur [4]
3.
[4]
Explain an advantage and disadvantage of Pu´s approach to Corporate Social Responsibility
4.
[10]
Explain the opportunities and threats PU may face when opening a campus in Country B
5.
Apply Pink's motivation theory to PU (8 marks)
71
6.
Identify two types of external sources of finance that PU has benefitted from. (4)
7.
Discuss ways of altering workplace patterns and practices as part of Adriana’s short-term
plans for PU (line 140). (4)
8.
Specific to the marketing mix, discuss PU’s USPs to differentiate themselves from other
universities. (6)
9.
Evaluate Adriana Cortez’s strategies to correct PU’s cash flow problems (line 57). (6)
10.
Discuss sources of funding for PU’s long-term plan (line 135). (6)
11.
Explain 2 advantages and 1 disadvantage of PU having contingency plans to deal with
catastrophes such as the recent accident at a nearby chemical plant. (6)
15.
???Jake when increasing their teaching provision [4]
○
PU would need to work with their HR team to create a job description and person specification
for the lecturer role that they are advertising. This would need to include information such as the
hours to be worked as well as the roles and responsibilities. This would be important for PU to
attract a suitable candidate that is able to fulfill the role e.g. suitable teaching experience and
qualifications. This could increase the quality of teaching. The role created would then need to be
advertised by HR/university, this could be externally on online recruitment websites or in the local
job centre or newspaper. PU would need to ensure it outlines the job required and information about
how to apply such as sending a CV, they should ensure this does not discriminate against anyone.
16.
With reference to PU, describe one advantage and one disadvantage of Jim’s leadership style
[4] (could also refer to a power culture - HL)
○
Jim’s leadership style would appear to be autocratic. An advantage of this would be that Jim is
able to make decisions quickly as he does not consult with other employees. This may mean that
Jim can decide upon suitable resources and examination content that lecturers should use, quickly,
increasing efficiency and allowing time to be devoted to other areas of the faculty. On the other
hand, a disadvantage would be that, as Jim does not consult employees on decisions, this has
already led to lower morale and accusations of bullying made against him. This can lead to
damaging the reputation of the university, which already has controversy with ethical issues and can
increase labour turnover, as shown in the case of Patricia. This will be costly for PU in both legal
fees for a court case and future recruitment costs to replace employees.
72
17.
With reference to PU, explain the differences between leadership and management [4]
○
Jim would be an example of a manager in the history faculty. Jim’s role would involve setting
objectives and planning and organising resources to meet these objectives e.g. improving student
satisfaction rates in the faculty. He would also be responsible for directing and motivating
employees, however this appears to be not as successful due to low morale and dismissals.
Leadership is about taking responsibility for strategic decisions and setting the long-term vision. In
PU´s case, Adriana would demonstrate leadership as she would be considering strategic options
such as opening a new campus and how to reduce cash outflows. Adriana must make these decisions
while considering the impact on stakeholders and alongside the board of trustees.
18.
With reference to PU, describe an advantage and disadvantage of the previously planned
improved pay structure [4]
○
An improved pay structure could have been potentially motivational for lecturers who are
extrinsically motivated. This can help meet their psychological needs outlined by Maslow by
improving their access to basic needs as well as satisfying Herzberg’s hygiene factors. This may
increase the quality of teaching as lecturers feel appreciated and reduce labour turnover. However, a
disadvantage of an improved pay structure could be the costs involved in doing so, as well as
possible issues with equity. It is unclear what an improved structure may look like, this could mean
some lecturers get paid more than others depending on performance, in such a case, employees may
feel undervalued and that their input does not match the output, as outlined in Adams Equity theory.
This could cause conflict within PU.
19.
[4]
With reference to PU, explain an advantage and disadvantage of having a high staff turnover
○
A possible advantage of a high staff turnover is that new employees can bring new ideas and
approaches into the university. Younger lecturers may arrive with new innovative teaching
approaches that may improve the quality of learning for the students and increase their satisfaction
levels. This will help boost the university's reputation. A disadvantage of a high staff turnover is the
recruitment costs needed to replace the lecturers that have left. This would involve the costs of
advertising as well as interview. PU is currently losing revenue and struggling with cash flow,
therefore continued high staff turnover, would represent a large issue for the university as they may
not be able to afford to attract high quality lecturers, damaging their reputation.
20.
Apply Pink's motivation theory to PU [6]
○
Pink's motivation theory outlines autonomy, mastery and purpose as the three factors to
motivate employees. It would appear that in Jim’s faculty, there is a lack of autonomy due to his
autocratic leadership style in not consulting with employees. This lack of autonomy can demotivate
employees as they may feel their opinions are not valued and indeed has resulted in low morale
within the faculty and an employee being dismissed. It can be argued that through training and
upskilling, lecturers have had the opportunity to develop their skills and knowledge of using online
platforms for teaching. A planned expansion of the IT training programme would give further
73
opportunity to improve skills and the qualitaching being delivered. Teaching in itself can be
motivating for lecturers and provide them with purpose as they know that they are making a
difference to the lives and future careers of their students. This can lead to higher quality of lessons
and experiences for the students as the lecturers are keen for the students to do well.
21.
Using motivation theory, analyse the motivation of PU employees [6]
○
According to Maslow’s hierarchy of needs, it could be argued that security needs and esteem
needs are not being met. Due to the redundancies of lecturers and —switch to _ employment for
some, lecturers may be concerned about their jobs, this may be demotivating and negatively affect
the quality of their lectures. Furthermore, the allegations of bullying and low morale in the History
faculty, indicate that esteem needs are not being met, some lecturers have left, and others may
follow if the situation with Jim is not resolved. According to Pink's motivation theory, it can be
argued lecturers are motivated as they would likely feel a sense of purpose. Training the next
generation of teachers can be motivating for lecturers and provide them with purpose as they know
that they are making a difference to the lives and future careers of their students. In addition, the
training of lecturers could be considered as supporting them towards mastery as they have the
opportunity to develop their skills and improve which can be intrinsically motivating. It can also be
argued that some hygiene factors are not in place, according to Herzberg’s two factor theory, good
working conditions, good relationships with colleagues and job security would be considered
important to be in place. These seem to not be the case giving suggestions of racist and sexist
attitudes, bullying and low morale in the History faculty, as well as the redundancies. These may all
damage the reputation of the university and further increase labour turnover.
22.
Explain how innovation in communication technologies may impact on communication
within PU [6]
*Not 100% on this one* Please Business geniuses answer this better!!!
○
PU would have used some online communication programmes for the lecturers to teach their
lessons. The training in IT skills could improve communication both between lecturers and
management as well as between lecturers and students. The contamination has led to the need for
training, and this has upskilled lecturers, it could result in faster communication if they can
communicate via online communication tools/software and lead to more efficiency. Furthermore, it
may mean it is easier for students to ask questions or arrange meetings without having to have a
physical appointment, improving the student experience. Furthermore, innovation in communication
technologies may mean that lecturers no longer need to travel around the world for conferences, as
there may be more opportunities to join in online or have virtual conferences. PU could perhaps lead
the way with this and host virtual conferences for lecturers, this could help differentiate them further
from rival universities and save them costs as lecturers will not need to leave.
23.
Apply Handy’s shamrock organisation to PU [6]
○
Handy argued that organisations must adapt to changes in the business environment in order to
survive and thrive. PU has a professional core; they have many full-time lecturers who teach the
students and aim to provide high quality lessons to provide the best learning experience for the
74
students. Adriana needed to make 10% of the employees redundant to cut costs in the face of
dropping fees from the contamination. Due to this, other employees are fearing for their jobs, which
may impact their performance. In addition, the employees within the various research departments
are also full-time core employees, whose work on research has added a unique selling point for PU
and helped them attract funding and potentially save lives such as new medicines being developed.
PU have had 20% of staff moved to part time employment, this was a cost saving exercise which can
support PU in managing their cash flow and they may only teach a limited number of classes.
However, as it appears that this was a forced move from PU, the part time lecturers may be
demotivated by this as they may now not have enough income to meet their needs and wants and
this could negatively impact the quality of lessons.
24.
Explain two possible training methods PU may have used when expanding their IT training
programme [4]
○
PU may use on the job training by offering training on the specific software that the university
is using for online teaching. This will be useful as it is specific to the needs of the lecturers and
could be delivered by a member of the IT department who may be a specialist in this area, thus
saving costs of having to hire someone external. PU may use off the job training to train the
lecturers, if they are using a particular software, they may wish to have the lecturers attend a session
where they can learn about the software from specialists. This would result in a higher quality of
training and increased skills of the lecturers who could deliver more effective online lessons.
○
On-the-Job training can be used in the form of internships as a way for employees to
practically learn skills needed for their IT training programmes. This can boost employee
relationships as the new employees will get familiar with their working environment and start
developing relationships with other senior employees (mentorship style). However, this can be
unproductive for the business as it reduces working hours for current employees and the new
employees may disturb working practices with queries or need for assistance.
25.
Explain an advantage and disadvantage to PU of expanding their IT training programme [4]
○
PU may use off the job training to train the lecturers, if they are using a particular software,
they may wish to have the lecturers attend a session where they can learn about the software from
specialists. This would result in a higher quality of training and increased skills of the lecturers who
could deliver more effective online lessons. However, increased training will be both time
consuming and expensive for PU. The lecturers may lose a day or more attending sessions on
developing their IT skills for online teaching, however when the facilities are refurbished, these
skills may not be necessary anymore. This presents a possible opportunity cost for PU, who with
falling revenues, need to spend their budget wisely. How work patterns, practices and preferences
change
26.
With reference to PU, explain an advantage and disadvantage of teaching online lessons [4]
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○
An advantage of teaching online lessons is that the lecturers could save travel costs as they no
longer need to travel to work and can work comfortably from home and plan their schedules. This
could free up money that they could spend on their own needs and wants to satisfy them. These
factors can be motivational, such as increased autonomy, according to Pink's motivation theory. A
disadvantage could be that the lessons may not be as productive, without face-to-face contact, it may
be difficult to assess if the students are engaged in the lesson and some students may not be able to
attend due to not having a computer or internet problems. This will hurt the quality of the lessons
and could negatively affect student performance and the future reputation of the university.
27.
Explain the impact of online teaching on two stakeholders [4]
○
One stakeholder affected would be the lecturers, the lecturers could save travel costs as they no
longer need to travel to work and can work comfortably from home. This could free up money that
they could spend on their own needs and wants to satisfy them. These factors can be motivational
such as increased autonomy, according to Pink's motivation theory: However, the students may be
negatively impacted as they may not receive the same individual attention online and may not feel
as engaged in the lesson due to a lack of face-to-face contact. Some students will also not be able to
join as they don’t have computers or may have internet issues and may struggle to pass the course
due to these issues, impacting their future careers. Some students may even choose to leave to get
face to face teaching.
28.
Explain possible internal and external factors that may influence the human resource
planning of PU [6]
○
One possible internal factor is the budget of PU, they will only be able to spend a certain
amount on their recruitment costs, this will impact how many lecturers they can hire, what salaries
they can offer and training costs. PU may find that they cannot hire as many employees as needed
especially as they have falling revenues to date. This could result in PU not having enough expertise
to meet the standards their students require and are paying for.
One possible external factor is the current recession, this could also alter their human resource
planning as PU may anticipate less demand for their university courses as students may seek
cheaper fees. This may mean PU requires less employees. Their state fees are competitive, but we
don’t know that they are the lowest. They may also need to raise the fees if revenue continues to fall.
However, it is possible that a recession may lead to an increase in the supply of lecturers as
historically teacher/lecturer applications rise in a recession due to being seen as having more job
security, however PU are not state operated so this could prove to not be the case.
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2 Possible Section
1.
State two common steps of the dismissal process that PU would need to undertake [2]
(1) The worker is given a first, verbal warning, explaining the misbehaviour.
(2) If things do not improve, the employee is issued a formal written warning. Often given an
improvement plan, with set targets.
(3) Employment is terminated if a third offence is committed.
2.
State two steps of the redundancy process PU may have undertaken [2]
(1) Planning the redundancies – the reasons for the redundancies must be clearly identified and
communicated
(2) Preparing a timeline – the employer needs a timeframe in which to complete the redundancies
(3) Communications with employees – workers need to know why they are being made redundant,
and be given notice of the redundancies in order to plan their next move
(4) Selection – whether redundancies are voluntary or involuntary, the criteria for redundancy
selection must be clear, fair and lawful.
(5) Execution – individuals are contacted and spoken with about the redundancies. They should
also receive formal written notification
3.
Explain two ways Adriana may resolve conflict in the History Faculty [4] (HL only)
○
Adriana may use conciliation by having an independent mediator listen to both sides of the
arguments in the issues between Jim and the dismissed employee Patricia (as well as potentially
other employees) The mediator will decide the legal outcome if both parties agree, this could be
beneficial as would avoid accusations of bias and allow PU to have been fair in their conflict
resolution. Adriana may also look to implement more industrial democracy, as Jim does not consult
employees on decisions, this is an area that could be improved quickly. Adriana may first of all wish
to speak privately with Jim and identify the source of his behaviour change, due to rumours of
personal issues, Jim may require some time off or extra support. Employees could then be given the
chance to get involved in decisions and bring forward ideas within the faculty, this can help conflict
issues within History as employees feel more valued and could also be brought into other faculties.
○
Arbitration is a form of stakeholder conflict resolvement where both parties agree to accept the
decision of the business.
4.
Explain two suitable non-financial rewards PU could provide employees as a form of
motivation [4]
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○
PU could grant more empowerment to employees by giving them more autonomy and
authority within their roles. This would be particularly beneficial in Jim’s History faculty. By having
more input on decisions, and possible additional leadership opportunities within the faculty, this
could motivate employees to provide even greater quality of teaching, strengthening PU’s ethical
objectives towards stakeholders. This is highlighted by Pink’s motivation theory. PU could also
provide more teamwork opportunities for employees. There could be more collaboration between
faculty areas to identify new teaching ideas and approaches, project work between faculties and
opportunities for feedback to be given. This would help employees feel more involved in the
university and lead to more creativity and intrapreneurship, in line with PU’s mission statement.
5.
With reference to PU, explain two forms of industrial action employees may take in the
History faculty [4] (HL only)
○
Employees such as the lecturers may go on strike against PU by not coming into work for a
period in protest against bullying and Jim’s controlling behaviour. This could damage the ethical
brand image PU have established and goes against their mission statement. This could lead to a
further loss of revenue as students may leave due to having lessons cancelled on top of online only
lessons. Employees may decide to work to rule, this would involve the lecturers only doing the
minimum required to fulfil their contractual obligations. This may mean only responding to emails
or grading work within contracted time. This could delay key decisions and negatively affect
students’ experiences who may need to wait a long time to get responses to questions or receive
feedback.
6.
Explain two steps of the recruitment process, PU may undertake when increasing their
teaching provision [4]
○
A step of the recruitment process PU may undertake is drawing up a job description, as when
searching for a new teacher, they will have to outline the responsibilities and duties to be carried out
by the person employed
○
Another step of the recruitment process PU may undertake is induction training, as when the
university has decided on a new teacher, they will have to provide the new employee with an
introduction, therefore explaining the job role and procedures the university has
7.
Explain two possible training methods PU may have used when expanding their IT training
programme [4]
○
8.
Explain the impact of online teaching on two stakeholders [4]
○
9.
With reference to PU, describe one advantage and one disadvantage of Jim’s leadership style
[4] (could also refer to power culture - HL)
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○
10.
With reference to PU, explain the differences between leadership and management [4]
○
11.
[4]
With reference to PU, explain an advantage and disadvantage of having a high staff turnover
○
An advantage of a high staff turnover is that it enables the company to meet more experienced
workers, for example, if a teacher were to be dismissed or resigned from Peacewick, a more
experienced and qualified teacher may take their place.
○
A disadvantage of a high staff turnover is higher costs to the company, as Peacewick is already
struggling with cash flow problems, having to recruit staff and train them will incur more costs
which may worsen their cash flow position.
12.
With reference to PU, explain an advantage and disadvantage of teaching online lessons [4]
○
13.
Apply Pink’s motivation theory to PU [6]
14.
Using motivation theory, analyse the motivation of PU employees [6]
○
15.
Apply Handy’s shamrock organisation to PU [6]
○
º1. Question Bank
Unit 1: Business Organization and Environment
1.
State 2 internal and 2 external stakeholders of PU. (2 marks)
2.
Examine the impact of the external environment on the functioning of the university. (10
marks)
3.
Prepare a SWOT for PU. (8 marks)
4.
Discuss the difference in the manner in which a non profit organization functions as
compared to a profitable one. (6 marks)
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5.
Describe any 2 stakeholder conflicts being experienced by PU. (4 marks)
6.
Using a fishbone model evaluates the fall in student numbers in PU as an organization.
7.
Explain the usefulness of a business plan.
8.
Examine the usefulness of a mission statement to PU.
9.
Examine the CSR policy of PU.
10.
Examine the impact of ethical failure on PU. (6 marks)
11.
Using the Ansoff Matrix, examine the growth strategies being considered by Adriana.
(8 marks)
12.
Examine the STEEPLE analysis on environmental and ethical factors (sustainability and
ethical issues)
Unit 2: HR
2.
Explain the factors causing Adriana to opt for redundancy.
3.
Explain 2 benefits of having part time workers.
4.
Using the handy shamrock model, prepare an organizational culture for PU.
5.
Explain the reasons leading to high employee turnover. 6 marks
6.
Explain any 2 reasons leading to employee dismissal. 4 marks
7.
Examine any 2 strategies Adriana should use to resolve the human resource crisis in PU. 6
marks
8.
Examine the leadership style displayed by Adriana 6 marks
9.
Examine the leadership style displayed by the head of faculty.6 marksa
10.
Using any two relevant motivational theories examine the reasons behind employee turnover
in PU.
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11.
Explain the importance of training to an organization
Unit 3: Finance
1.
marks
Evaluate any two sources of finance available to a non-profit organization like PU. 6
2.
marks
Examine any 2 sources of finance available to the university for funding its research. 6
3.
Evaluate the use of Grant as a source of finance for PU. 6 marks
4.
Examine the usefulness of a cash flow forecast for PU. 6 marks
5.
Examine the reasons behind the cash flow issues in PU. 6 marks
Unit 4: Marketing
1.
Explain the usefulness of surveys as a method of research. (6 marks)
2.
Explain the use of social media as a form of promotion. (4 marks)
3.
Define the term marketing budget. (2 marks)
4.
Examine the impact on the university of being online during the period from 20-22. (8
marks)
5.
Discuss the impact of promotion on an organization like PW. (6 marks)
6.
Examine the existing marketing mix of PU. (8 marks)
7.
Using a BCG matrix, evaluate PU’s product portfolio. (6/8 marks)
8.
With reference to the case study, outline what is meant by unique selling point (USP). (2
marks)
9.
Construct a marketing mix for PU. (8 marks)
10.
Examine the impact of the catastrophic event on PU’s brand. (6/8 marks)
11.
Examine the methods of research used by PU. (6 marks)
Unit 5: Operations
1.
Using the force field model, evaluate the spending on R&D for a university like PU.
2.
Examine the impact of implementing sustainability on PU.
3.
Evaluate the methods used by Adriana in managing the crisis caused by the pandemic. 8
marks
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4.
With reference to PU, examine the costs and benefits of contingency planning.
5.
With reference to PU, distinguish between adaptive creativity and innovative creativity?
6.
Identify and explain the benefit and limitation of R&D for PU.
Possible questions for Section B:
Section B:
After a few months, the marketing campaign shows signs of working, and student enrollment is up.
The number of students will be better than it was before the explosion. But, the university is still in
a competitive market. Janice, the head of marketing, has been collecting secondary market research
about enrollment to calculate the market share the university has and to see how the market is
evolving. They are not market leaders, but would like to be in the next 5 years.
Table 1: Sales in (000’s)
Peacewick
St. Mary’s
Leighton
Chester
Windfield
2021
2,500
1,200
900
5,000
3,500
2022
2,400
1.300
1,400
5,200
3,900
But, this increase has caused some issues for the university. Some of the buildings are still not
decontaminated, so they will have to build a new facility. The university has thought about two
different options as sources of finance. First, they have considered taking out a long-term loan that
they will pay back over 20 years. The interest rates are low due to the economic recession. Their
other option is asking for donations. They will run a campaign asking former students and generous
donors from the community for money to start construction. However, the cost of the building is
high and the board of trustees is not sure how long it will take to raise the money.
The university does not want to turn any students away due to the lack of space for them on campus,
but they also do not want to be in debt for many years because they do not know what the future will
bring.
a. Define the term secondary market research.
[2]
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Secondary market research is a type of research that has already been compiled, gathered, organized
and published by others, which includes Market analysis reports, Government publications, Media
articles, Academic journals.
b.i. Using Table 1, calculate the market share for PU in 2021. (show all necessary workings)
[2]
Market share in 2021 = Product sales / Total market sales × 100% = 2500 / 2500 + 1200 + 900 +
5000 + 3500 × 100% = 19.08%
b.ii. Using Table 1, calculate market growth from 2021-2022 in the not-for-profit education
section. (show all necessary workings)
[2]
Market share in 2022 = Product sales / Total market sales × 100% = 2400 / 2400 + 1300 + 1400 +
5200 + 3900 × 100% = 16.90%
Market growth = Market share in 2022 - Market share in 2021 / Market share in 2021 × 100% =
16.90% - 19.08% / 19.08% × 100% = -11.43%
c. Explain one advantage and one disadvantage of being market leader for PU.
[2]
The market leader is the product or brand with the highest market share。 If PU is the market leader,
it will have high brand recognition and can attract more new candidates to enroll in PU, thus gaining
more profit from tuition fees, improving PU's cash flow problem, and also allowing PU to have
more money to improve the quality of teaching, thus further consolidating its share in the market
and forming a virtuous circle. However, as a market leader, PU is likely to receive more attention
and scrutiny from the mass media, and if something scandalous were to happen to PU, like the
previous Di Jones incident, its reputation would be greatly damaged to a far greater extent than at
other non-market leader universities。
d. Using the Peacewick University case study and additional information, recommend which source
of finance PU should choose.
[10]
One source of finance PU could use is is the continuation of government grants. Since the damage
inflicted to PU’s teaching facilities were as a result of external factors beyond the organization’s
control, they can apply for another government grant. Given PU’s commitment to CSR (corporate
social responsibility) and its beneficial research into medicine and IT, it presents itself as a strong
candidate for a government grant, especially as refurbishing its teaching facilities will only serve to
further fulfil PU’s ethical objectives. In contrast to other source of finance, like loan capital, a huge
advantage of government grants is that they do not need to be repaid, preventing the worsening of
PU’s cash flow problem.
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Potential Questions for Section B
Does anyone have a markscheme for this question? Could you post MS below please?
The board of directors wants Adriana to consider the possibility of implementing a new platform to
create an online University. For this, new very expensive servers should be bought, broadband
improved and several special classrooms set up for servers and online tutoring. In addition, teachers
should have reserved a certain number of teaching hours to attend the tutorials requested by distance
students, which would be difficult due to the frequent trips of teachers to attend conferences around
the world. In this case, the experts put the economic forecasts at 40% improvement, 50% that it is
maintained and 10% that the economic situation worsens.
Adriana has undertaken an investigation of the two possible options. He knows that, at the moment,
it is only possible to carry out one of the two. You have developed a scheme to compare the two
options based on various outcomes.
TABLE 1: Forecast in millions.
(millions rands)
Cost
economy improve
maintain
Worse
Open Campus B
(1.500)
5.500
2.500
500
Open online University.
(800)
2.600
1.650
1.000
(a) Define the term contingency plan.
2 points
A contingency plan is a plan devised for an outcome other than in the usual plan.
(b) Outline 2 potential advantages of government grants for PU.
4 points
A grant is like a loan, but with no interest, that does not need to be paid back, which can prevent the
worsening of PU’s cash flow problem.
This can also increase the credibility of PU because the competition to get government funding is
very fierce and by getting government funding, which is seen as a great achievement with high
credibility, it can help PU to improve its reputation and attract more candidates to apply to PU.
(c) Make a complete decision tree. Show all calculations.
6 points
(d) Evaluate which of the two options would be more convenient for PU.
8 points
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Timeline of events
1935
-
Peacewick University (PU) was founded as a teacher training college (1).
1992
-
Peacewick University (PU) actually became a college (2).
2019 (October)
-
“PU was one of the most popular universities in the country” (9).
2020
-
“... measures of student satisfaction were very high in a January… survey” (10).
2020/2021
-
“There was an economic recession in the country (Country A)...” (17).
2021 (September)
-
“There was a catastrophic accident at a nearby chemical plant” (18).
-
“All on-site teaching stopped for two months” (26).
-
Limited classroom accommodation was found elsewhere. For the remainder of the school
year efforts were made to continue courses online (26).
2021/2022
-
“Some of the research at PU’s teaching campus was suspended until the end of the…
academic year “ (41).
-
The Faculty of Medicine received a large amount of funding from the government to
research medicines to reduce the impact of the exposure to dangerous chemicals, from the
chemical plant accident (42).
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-
“The IT Faculty received funding from the founder of one of the world’s largest software
companies to research the use of artificial intelligence (AI) in detecting contamination” (44).
-
Before the disaster there had been high hopes for PU for 2021/2022, the business plan was
based on an expected increase in student numbers (47).
-
Despite PU’s revenue falling, PU still had to pay employee’s, maintain buildings and pay
general expenses (56).
-
As the academic year progressed, evidence indicated that PU’s marketing was increasing
student interest but student places remained low (77).
-
10% teaching staff were made redundant, 20% teaching staff made part-time (58).
-
Insufficient IT equipment for lecturers (30)
-
“Many students lacked the necessary IT equipment or internet connection to attend online
lectures.” (33)
-
There was difficulty in teaching non face-to-face methods. (32)
2022/2023
-
Student numbers for this coming academic school year (2022/23) are predicted to be much
lower (51).
-
January 2022, the standard of teaching had returned to a high quality, but now online (65).
-
February 2022 the university is feeling positive going forward, due to the research and
findings of both the Medical and IT faculties (70).
-
The recent appointment of Di Jones is causing controversy (107)
86
Definitions
Accounts: Record of a business’s financial statement in order to have improved control of financial
planning
Cashflow: movement of cash in and out of the business
Cashflow forecast: A projection of what a company expects its cash inflows (revenue from sales)
and cash outflows (payments for wages and other expenses) to be over a period of time.
Carbon footprint: The negative impact of business operations on the environment
Company: Refers to a business
Corporate Social Responsibility (CSR): Business considers the interest of society and takes
responsibility for their decisions on customers.
Economic Recession: a period of negative economic growth in a country - During an economic
recession countries typically experience low production and spending in the economy, high levels of
unemployment, and low-income levels for workers.
Business plan: Refers to the document that sets out the business idea, its goals and objectives and
other details of how the business will operate in each department of marketing, operations and
finance. It can be used to raise external sources of finance.
Director: Directors of a business organization are people that are responsible for controlling,
managing and directing the various functions and departments of a company or organization.
Employees: Employees are the people that work for the organization in exchange for benefits such
as wages or salaries and other benefits
Employment Contracts: Employment contract is signed agreement between the employer
External environment: Refers to the factors that are beyond the control of a business. The external
environment affects all of the businesses in an economy.
Funding: Funding is when an external individual or organization invests in the business to help
support the operations of the organization.
Government Grants: Grants are government financial gifts to support business activities and are not
expected to be paid back. These are often given to businesses in less developed areas of a country.
Management: The process of organizing resources. This may involve planning, organizing and
coordinating all the resources available for a particular task.
Manufacturers: person or company making goods for sale
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Marketing: the management process of identifying, meeting and anticipating the needs and wants of
customers in a profitable manner.
Marketing Strategies: Business plan and strategies for reaching potential customers and turning
them into new customers of their product/service.
Mission Statement: A mission statement refers to the declaration of an organisation’s overall
purpose. It forms the foundation for setting goals and objectives for the business. Advantages:
quickly inform groups, give sense of purpose, motivate employees, and establish business
objectives. Disadvantages: Vague and general, competition may have similar objectives or goals and
sometimes, they are only done to make shareholders feel good.
Not-for-profit Business: Non profit- businesses run in a commercial manner but without profit being
the main goal. These companies use surplus revenues to achieve social goals.
Non-Governmental Organisation (NGO): Non-governmental organisations are private-sector
not-for-profit social enterprises that function independently from any government.
Operating costs: The costs of operating a business, which includes the set-up and daily running of
the business.
Outflow: Money that goes out of the business in the form of expenses such as rent, electricity, etc.
Over-pricing: Over-pricing is the act of charging extra for the services provided in order to increase
profit margin.
Part-time Employment: the process of recruiting employees that work for fewer hours and are
cheaper to hire and easy to replace.
Policy: Policy is a system of guidance that aids decision-making for any organization
Quality: Quality means that a good or service must be fit for its purpose by meeting or exceeding the
expectations of customers.
Redundancy: The process of laying off staff where job cuts need to be made. It may be either
compulsory where workers are given their notice because there is no longer work for them or
voluntary.
Resignation: an act of voluntarily giving up of current position
Revenue: The total amount of income generated by the sale of goods or services related to the
company’s primary operations.
Social media/Viral Marketing: Social media marketing utilizes social media platforms and websites
to promote a product or service provided by the organization.
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Staff turnover: Staff or labor turnover measures the number of workers who leave a firm as a
percentage of the workforce, per year. It is often used to gauge the level of motivation in an
organization. A high staff turnover rate means workers are less motivated to work in the
organization.
Sustainability: Sustainability refers to the operation of the business without negatively harming the
environment.
Training: the process of increasing the knowledge and skills of the workforce to enable them to
perform their jobs effectively.
Trend: a shift in the fundamental business dynamics within an industry.
Capacity utilization (underemployment of machineries): measures the percentage of an
organization's potential output that is actually being realized
Vision statement: A statement of what the organization would like to achieve or accomplish in the
long term
Thanks for this document good luck with the IB exams ;)
Whole lotta love <3
Peace! (or should I say “Peacewick”!
😐
🧡🧡
)
don’t stay up late and relax
Thanks to all the business IBers who contributed!
My pleasure!
titty
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