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Sorry for my late submission Sir, please give me some advice on this.

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A risk of flying must be displayed on all advertisements:

HH will have to spend money to redesign advertisements to include the risk of flying, this will require finances and may result in a short-term cashflow problem. It will increase business costs, resulting in a lower profit margin.

The minimum wage is increased by 10%:

Pilots are most likely not paid minimum wage; their salary is $50,000. However, pilots may expect an increase as minimum wage has increased, resulting in higher business costs. The increase is 10% so the new salary would be $55,000. Depending on the number of pilots employed, this can have a major impact on the company, increasing costs significantly and possibly reflecting in the price for customers. If they want to target the tourist industry, they may need to hire more pilots which will result in higher costs. However, they still need affordable prices for tourists to remain competitive with other businesses in the industry. This may make it hard to profit or a low profit margin.

A new environmental tax is introduced of $1 per tourist:

The environmental tax may not have a big impact, HH are unlikely to lose customers as the tax would be imposed on all helicopter flights so it would affect all businesses. The tax is low and HH can increase the prices to pay the tax by a small amount, it is inelastic.

Conclusion:

The minimum wage increasing by 10% will have the biggest impact on HH if the pilot’s salaries need to be increased. Long. term, this can have a major impact on the finances of the business. This decreases their profits significantly, as well as may increase prices for customers and make flying unaffordable for some, narrowing their target customer audience even more. This is more significant compared to an extra $1 tax on tourist flights, which is paid for by tourists and the small price makes it inelastic. Long term, this is also more expensive compared to redesigning advertisements.

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4 b)

The risk of flying must be displayed on all advertisements:

This is unlikely to affect the profits of HH. Because HH provides helicopter flights for business people, it means the customers have used their services very often. They must know the risks of flying through so many flying experiences. Also, due to the legal and ethical factor of PESTLE factors, HH has to display the advertisements anyway and raise awareness of the risks of flying.  However, a part of consumers may be aware of the risks of flying so the profits of HH may decrease. But due to the services of HH is price-inelastic and they have built good customer loyalty, the change of advertisement will not create huge impacts on the profits.

The minimum wage has increased by 10%:

The increase in minimum wage will increase the fixed costs and costs of production of HH so HH may need to raise its prices of services. But due to its plan of expansion to attract more tourists, it will affect HH’s profits seriously as the tourism industry is price-elastic. A rise in prices will cause a dramatic response to the demand of customers. However, the salaries of pilots are already very high and the demand of business flights is still steady, the increase in the minimum wage by 10% will not have a huge impact on HH’s profits and HH can still be able to pay the salaries and be successful.

A new environmental tax is introduced at $ 1 per km per tourist:

As we can see from the forecast of HH, the introduction of the environmental tax will increase the price of the average tourist flight by 5%. Moreover, the number of tourist flights per month will be 160 after HH expanding its business which is more than the number of business flights per month. The tourist flights are price-elastic, so it means the increased prices will lead to a dramatic decrease in the demand for the services. Once HH expands its existing business, it may face some cash flow problems, the decreased demand of customers will further affect the profits of HH. But HH can consider the new environmental tax as an opportunity to increase CSR and develop customer loyalty because it shows HH is raising awareness of environmental problems.

Conclusion:

The introduction of a new environmental tax will cause long-term impacts on HH’s cash flow and the demand of price-elastic tourist flights will decrease its profits dramatically. Also, competition in the tourist market is very strong. The display of the risks of flying will have smaller effects because the business flights are price-inelastic and most of the customers should have already known about the risks of flying.  The increase in the minimum wage may increase HH’s costs of production but since the salaries of pilots are high already, HH can still be able to pay off the salaries. Overall, I think the introduction of a new environmental tax will have the biggest effect on HH’s profits.

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The risks of flying must be displayed on all advertisements:

If HH’s previous advertisements don’t have the risk of flying, HH has to change them, which means that HH need to spend more money. And HH is thinking of expend, which might lead to cash flow prolem. Also, the risk of flying would discourage some potential customer to use HH’s service. For ethical reason, people should be informed about the risk of flying before they spend their money to take the service. Some people choose the service without knowing the risk. If the advertisement of the risk of flying becomes compulsory, more people will consider the risk before making choice.

The minimum wage is increased by 10%:

This would increase the business cost of HH. If HH cannot earn enough profit under the new policies (flight tax), it will face a lost. But if the wage HH offers already above this level, HH doesn’t need to worry about that. if HH plans to target the tourists, it will need to employ more pilot since there would be more customers. Therefore, HH need to raise the payment for all the pilot it employs. And this would add to HH's business cost. HH would either earn less profit or raise the price charged for customers because of this policy.

A new environmental tax in introduced of $1 per km per tourist:

As the price for tourists is elastic and the competition in this market is high, if HH decides to target tourists, this would mean that HH need to lower the price of the ticket and thus, the profit per unit would decrease. If HH decides to keep the price the same instead of raising the price, it would earn less revenue. But this could also make HH more competitive in the market and offers HH a chance to get more market share as many other competitors might consider to raise the price due to the new policy.

Conclusion:

I think environmental tax would have the biggest effect on HH. Because the effect of this is a long term effect which would have a large impact on HH’s operation. As a large market, tourism market is competitive. And as this is a new area to HH, it makes HH less competitive. Therefore, it is hard for HH to enter this market and might result in less profit.Though advertising the risk might discourage potential customers, most people already know the risk of taking fly. Raising the minimum wages would have a long term effect on the business cost, but this is affordable for HH as long as it keep getting profit.

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I could not finish on time

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Mr Rolfe it started working for me at 2:27, so i finished my 12 mark answer

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Brian, did you have any issues geting it to load?

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Hmmm... this is annoying, seems like Padlet isnt working for a few poeple

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Most of the people struggle to get in padlet

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P2, line 6 i said 'potentially costs' , I meant 'potentially profits'.

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Some students have still not completed/provided and answer to question 4b. Please SCROLL UP to locate the HH case study and question and provide your answer today.
I would like to review some Exam Paper 1 questions and technique for the following lessons this week.
We will schedule a short Microsoft Teams phone call for Friday afternoon!

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4 b)

The risk of flying must be displayed on all advertisements:

This is unlikely to affect the profits of HH. Because HH provides helicopter flights for business people, it means the customers have used their services very often. They must know the risks of flying through so many flying experiences. Also, due to the legal and ethical factor of PESTLE factors, HH has to display the advertisements anyway and raise awareness of the risks of flying.  However, a part of consumers may be aware of the risks of flying so the profits of HH may decrease. But due to the services of HH is price-inelastic and they have built good customer loyalty, the change of advertisement will not create huge impacts on the profits.

The minimum wage has increased by 10%:

The increase in minimum wage will increase the fixed costs and costs of production of HH so HH may need to raise its prices of services. But due to its plan of expansion to attract more tourists, it will affect HH’s profits seriously as the tourism industry is price-elastic. A rise in prices will cause a dramatic response to the demand of customers. However, the salaries of pilots are already very high and the demand of business flights is still steady, the increase in the minimum wage by 10% will not have a huge impact on HH’s profits and HH can still be able to pay the salaries and be successful.

A new environmental tax is introduced at $ 1 per km per tourist:

As we can see from the forecast of HH, the introduction of the environmental tax will increase the price of the average tourist flight by 5%. Moreover, the number of tourist flights per month will be 160 after HH expanding its business which is more than the number of business flights per month. The tourist flights are price-elastic, so it means the increased prices will lead to a dramatic decrease in the demand for the services. Once HH expands its existing business, it may face some cash flow problems, the decreased demand of customers will further affect the profits of HH. But HH can consider the new environmental tax as an opportunity to increase CSR and develop customer loyalty because it shows HH is raising awareness of environmental problems.

Conclusion:

The introduction of a new environmental tax will cause long-term impacts on HH’s cash flow and the demand of price-elastic tourist flights will decrease its profits dramatically. Also, competition in the tourist market is very strong. The display of the risks of flying will have smaller effects because the business flights are price-inelastic and most of the customers should have already known about the risks of flying.  The increase in the minimum wage may increase HH’s costs of production but since the salaries of pilots are high already, HH can still be able to pay off the salaries. Overall, I think the introduction of a new environmental tax will have the biggest effect on HH’s profits.

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Risk of flying Ad: Yourself, Angus and Simone are the only three students to identify the immediate financial impact of changing the ads, you have also applied and analysed this very well. A really good example of gaining 3 marks for this part of the question. Excellent!

10% NMW increase: You have identified and applied the fact that pilots get paid well over the NMW so it is unlikely to affect HH. Well done, however you have also said that it "MAY INCREASE THEIR BUSINESS EXPENDITURE" (try to link this ti HH's plans to expand their service to the tourist industry..)

Tax increase: Good use and application of diseconomies of scale. However, think about trying to apply and explain 'Substitutes' and 'Inelasticity' to argue why the tax increase may NOT result in huge revenue loss for HH.

Conclusion: A good conclusion which briefly considers ALL factors, well done. However, you should redraft your answer regarding the NMW increase - this may affect your conclusion.
10/12

**please redraft to include responses to the comments I have made.

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The risks of flying must be displayed on all advertisements:

The price of redesigning and printing these advertisements will affect costs and overall profit. The redesign also may scare customers and result in lower revenue. This may result in HH increasing the price of tickets as there are less passengers and they need more money to cover costs. It also may make the customers feel like HH is trustworthy and truthful, which will lead to customer loyalty and guaranteed revenue in the future. This will increase the profits as well.
Well done, you join Simone in being the only student (so far) to identify the immediate financial impact of the new ad requirements - you have also applied this fact well.

The minimum wage is increased by 10%:

This is unlikely to affect HH drastically, as their workers most likely don’t get paid at minimum wage. However, pilots may demand an increase in their salary as a result of the increased minimum wage, which would hurt HH’s costs and decrease the profit per unit. This may also lead to an increase in price for customers as a result of increased salaries which would likely decrease the demand for their product. However, this is unlikely to happen because HH doesn’t pay their workers at minimum wage.
Good knowledge of skill level / minimum wage. Could the NMW 10% increase have a negative effect on HH's plans to expand their services to the tourism industry? (Why/Why not?)

A new environmental tax is introduced of $1 per km per tourist:

This $1 per km increase will affect HH's costs, and possibly will hurt profits so they may need to increase the prices of their tickets to maintain their current profits which may decrease the demand of the tickets, but other competitors will experience this change as well, so they are likely to increase their prices alongside HH. This means that HH will likely not become any more or less competitive.

Conclusion:
The risk of flying advertisements are likely to impact HH's profits the most as their competitors do not also have to do this and it could decrease their demand because customers may think that these risks are only applicable to HH and not all helicopter companies. the other legal controls affect all competitors, so its unlikely to have a large impact on HH and the other companies. Minimum wage is not going to have a large impact on HH because their workers don't work at minimum wage, the environmental tax can be covered by increasing prices, however, the advertisements may decrease demand altogether which has a larger impact.

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A risk of flying must be displayed on all advertisements: HH will have to spend money to redesign advertisements which will affect the overall cost and potentially lose profits. The new design could attract fewer customers and may lead to lower revenue levels. This may lead to HH increasing the ticket prices due to the low levels of customer and needing more money to cover costs.

The minimum wage is increased by 10%: This is the least likely to affect HH by a big margin because their working is probably making a bit more than the living wage. However, the pilots may demand an increase in their current salary due to the government deciding to increase the minimum wage being increased.

A new environmental tax of $1 per km per tourist: This is like to positively affect HH because this means that the tourist will have to pay an extra dollar per km when they are exploring the countryside which means that a lot of extra money will be heading towards HH which can overtime add up to a big amount of money which can lead to a larger profit margin.

Conclusion: In conclusion, the $1 per km per person will have the greatest impact on HH as that will positively impact the business financially as that will potentially greaten the profit margin as the tourists will have to pay more in order to get to the countryside. Overall, this is why I think that the new tax will have the greatest impact on HH.

You must provide a conclusion Leone. I now have added a conclusion, sir.

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Wesley Ross
4b)
The risks of flying must be displayed on all advertisements: If HH, under law had to state all the risks of flying in their advertisments their sales will certainly drop. Although the risk of flying, if everything is done by professionals, is low HH will still nonetheless need to state that their flights could even result in death in an accident. This understandably will deter some from using the services HH offers and so will result in their revenue dropping, and therefore likely a drop in their profits.
WHAT IS THE SHORT-TERM FINANCIAL IMPACT OF THE ADVERT REQUIREMENT?:  The short term financial impact of HH may be that it requires some more advertising campaigns to show to potential customers that the risks of flying are not actually high (or just convince them it isnt risky). Overtime they may result in convincing customers that flying is safe.

The minimum wage is increased by 10%:  A 10% increase to the minimum wage may slightly increase their costs, however, HH is a company that offers helicopter riders, their pilots, would then need to be highly trained and skilled professionals and most likely on a salary, not a wage so the 10% increase to minimum wage by the government likely wont increase the pilots pay and so more or less keep costs the same. Overall, costs will stay relatively the same and so profits may stay the same.
HOW MIGHT HH's PLANS TO EXPAND THEIR SERVICES TO THE TOURIST SECTOE INCREASE LABOUR COSTS UNDER THE NEW 10% NMW INCREASE? : If HH wants to expand to the tourism industry, they will need more workers for jobs that, are more likely to be paid via wage and so HH will need to pay those workers a 10% increase, which means that their labour costs will increase.

A new environmental tax is introduced of $1 per km per tourist: This should significantly impact HH's profits. A 1$ increase to each of their passengers will, over time add up to a large sum of money, especially since their helicopters will be doing multiple trips per day. Considering the rather high fuel cost of their helicopters per km this increase in costs will definitely result in a drop to HH's profits.
WHAT ABOUT SUBSTITUTE PRODUCTS AVAILABLE TO CUSTOMERS, WILL THOSE PRICES INCREASE? IS A HELICOPTER RIDE LIKELY TO BE ELASTIC OR INELASTIC IN TERMS OF PRICE ELASTICITY OF DEMAND? DO YOU THINK PROFITS WILL 'DEFINITELY' DROP? (you might also consider the CSR opportunity cost here...???):  Since the $1 tax to each tourist is enforced by the government, every single company doing the same service will also be affected by the tax. So the prices for all substitutes will still increase and since helicopter flights are definitely not a need, the price increase may really decrease the amount of customers and so decrease profits.

Conclusion: In conclusion, the 1$ tax per customer will have the greatest impact on HH's profits as, compared to a little doubt from customers from the advertisements causing some to not use their services (even though most will already know the risk). Also, in comparison to the 10% increase in minimum wage, the tax will also have a greater impact as HH's professional, and highly trained pilots will not be paid on a minimum wage basis. Ultimately, the tax increase for HH the most unavoidable cost and will cause the biggest impact on HH's profits.
THIS IS A GOOD CONCLUSION, WELL REASONED WITH A BRIEF COMPARISON OF ALL FACTORS. WELL DONE
10/12
Please provide a short answer to each of the comments I have made for each factor (you needn't redraft the essay nut I'd like you to consider and respond to my comments)

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Ads for Risk of Flying: You are the only student (so far) who has identified the cost of new promotional material - WELL DONE! However, you have misapplied this point! The application you have made says that maybe the risk of flying will deter customers from flying - this has no direct relation to the increased cost of changing the adverts. Please redraft this paragraph to identify, apply and analayse one of these arguments.
10% NMW: Very well applied fact that Pilots will be way above the pay threshold for NMW - but it is unlikely that pilots will expect a 10% salary increase also. How might the 10% in NMW effect HH's plans to proved flights to the tourist industry??
Tax increase: You're correct in saying that the tax may not have much impact. Try to use more key terms such as Substitutes and Inelastic...
Conclusion: A clearly justified conclusion but it is not likely to be the case that pilots expect a 10% raise. There is also no summary of comparison between the three factors.
please redraft to include the points made here.
8/12

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Some students have still not completed/provided and answer to question 4b. Please SCROLL UP to locate the HH case study and question and provide your answer today.
I would like to review some Exam Paper 1 questions and technique for the following lessons this week.
We will schedule a short Microsoft Teams phone call for Thursday!

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Mon. Feb 17th Year 11 Bus. - CT6
Morning class - the feedback should have been posted last week but i was having terrible connection and WiFi issues - my apologies.
Please see the feedback and RESPOND TODAY

MANY OF YOU ARE SCORING WELL (9 OR 10 OUT OF 12) BUT THERE ARE SOME SIMPLE IMPROVEMENTS TO BE MADE SUCH AS:
*INCLUDING KEY TERMS AND;
**MAKING SUMMATIVE COMPARISONS IN THE CONCLUSION TO ENSURE FULL MARKS

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Gem
Risk of Flying ad: Try to apply the PESTLE Factor which links to this part of the question.
You could also try to identify and opportunity for HH to improve promotion of their CSR and commitment to safety (could this help increase sales???)
NMW 10%: Do pilots get paid low enough to be affected by NMW or are they on such high salaries that the NMW increase won't affect them anyway? (Some good calculations here but think about the salary pilots get paid - will this be a factor at all? Why/Why not?)
TAX: A good point in considering that this is a market-levelling factors (all competitors will have to pay the same tax), try to include key terms like 'substitutes'.
Conclusion: A reasonable conclusion but you must consider and COMPARE ALL COMMENTS IN SUMMARY to give a balanced and reasoned conclusion.
(7/12)

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4 b) The risk of flying must be displayed on all advertisements: This is unlikely to affect the profits of HH. Because HH provides helicopter flights for business people, it means the customers have used their services very often. They must know the risks of flying through so many flying experiences. However, a part of consumers may be aware of the risks of flying so the profits of HH may decrease. But due to the services of HH is price-inelastic and they have built good customer loyalty, the change of advertisement will not create huge impacts on the profits.
Include the identification (Key Term) of a PESTLE factor which shows that ads must raise awareness of the risk of flying.

The minimum wage has increased by 10%: The increase in minimum wage will increase the fixed costs of HH because the salaries of pilots become higher so the profits of HH will be decreased. But as a job that requires skills, education and long-term training, the supply of pilots is limited, so an increase in wage perhaps can encourage the employment of pilots. This will benefit the expansion of HH as they will need another pilot to drive the helicopter. Therefore, I do not think the increase in minimum wage will have a big effect on the profits of HH.
Is it likely that Pilots were already being paid a lot more than the NMW, and will continue to be paid a lot higher than the NMW anyway? In which case - would the 10% affect Pilots of HH?? (Please redraft this part of the answer entirely - think about the plans HH have to offer services to the Tourism Industry instead; how might this be impacted by the NMW increase?)

A new environmental tax is introduced at $ 1 per km per tourist: As we can see from the forecast of HH, the introduction of the environmental tax will increase the price of the average tourist flight by 5%. Moreover, the number of tourist flights per month will be 160 after HH expanding its business which is more than the number of business flights per month. The tourist flights are price-elastic, so it means the increased prices will lead to a dramatic decrease in the demand for the services. Once HH expands its existing business, it may face some cash flow problems, the decreased demand of customers will further affect the profits of HH.
Excellent identification and application of facts/figures - you could consider how HH might use this as an opportunity to increase CSR and develop customer loyalty...?

Conclusion: I think the introduction of a new environmental tax will have the biggest effect on HH’s profits. Because it will cause long-term impacts on HH’s cash flow and the demand of price-elastic tourist flights will decrease its profits dramatically. The competition in the tourist market is very strong. The display of the risks of flying and the increase in minimum flying will have smaller effects because the business flights are price-inelastic and the niche market is less competitive.
A strong conclusion but you should try to provide a balanced comparison of all three arguments and then give your conclusion. (10/12)

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The risks of flying must be displayed on all advertisements:

If HH’s previous advertisements don’t have the risk of flying, HH has to change them, which means that HH need to spend more money. And HH is thinking of expend, which might lead to cash flow prolem. Also, the risk of flying would discourage some potential customer to use HH’s service.
Try to identify and apply one or two PESTLE factors which make it compulsory for HH to advertise the risks of flying?

For ethical reason, people should be informed about the risk of flying before they spend their money to take the service. Some people choose the service without knowing the risk. If the advertisement of the risk of flying becomes compulsory, more people will consider the risk before making choice.

The minimum wage is increased by 10%:

This would increase the business cost of HH. If HH cannot earn enough profit under the new policies (flight tax), it will face a lost. But if the wage HH offers already above this level, HH doesn’t need to worry about that.
Apply HH's plans to develop their product range in to the Tourism Industry - could this be affected by the NMW increase? Why/why not?

if HH plans to target the tourists, it will need to employ more pilot since there would be more customers. Therefore, HH need to raise the payment for all the pilot it employs. And this would add to HH's business cost. HH would either earn less profit or raise the price charged for customers because of this policy.

A new environmental tax in introduced of $1 per km per tourist:

As the price for tourists is elastic and the competition in this market is high, if HH decides to target tourists, this would mean that HH need to lower the price of the ticket and thus, the profit per unit would decrease.
If they reduce prices and pay for the taxes out of their own revenue rather than adding the tax increase to the price - how might this be used as a CSR promotional strategy? (Could this lead to increased market share and revenue?)

If HH decides to keep the price the same instead of raising the price, it would earn less revenue. But this could also make HH more competitive in the market and offers HH a chance to get more market share as many other competitors might consider to raise the price due to the new policy.

Conclusion:

I think environmental tax would have the biggest effect on HH. Because the effect of this is a long term effect which would have a large impact on HH’s operation. As a large market, tourism market is competitive. And as this is a new area to HH, it makes HH less competitive. Therefore, it is hard for HH to enter this market and might result in less profit.
A good conclusion but you should try to use the conclusion to COMPARE all three points briefly than give your answer.
Please redraft. (9/12)

Though advertising the risk might discourage potential customers, most people already know the risk of taking fly. Raising the minimum wages would have a long term effect on the business cost, but this is affordable for HH as long as it keep getting profit.

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Insert/Case Study HH

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Question 4(b)

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Thurs 13th Feb Yr 11 Bus. Gp 3 CT 7
Since we have been considering Government Objectives and External Factors lately (PESTLE) I would like you to draft an answer to Question 4b of the HH Exam Paper (below). Please try to complete the answer without referring to notes or learning resources where possible.

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Good morning class, thanks for your exam answers today. I'll mark them ahead of next lesson and give you feedback on Friday.

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Amaya

The risks of flying might affect HH as costumers might have the perception that helicopter flying is dangerous and therefore not want to fly with HH as it is in the helicopter industry. This could potentially decrease the profit that HH plans to make. However, this is also likely not to have a massive impact as if consumers are looking to fly in a helicopter they are most likely to already know the risks of it. These problems all come about from the legal and ethical side of 'PESTLE'. Despite the issues mentioned previously, this could be an opportunity for HH to advertise their company as one of the safer helicopter companies, backing this up with statistics and previous customer feedback. This could lead to more customers as HH might seem as safer alternative than its competitors.
Try to explicitly refer to PESTLE factors here but also consider how the ad campaign could be a potential opportunity to develop positive customer perception/relationships for honest service provision.

The increase of minimum wage would not impact HH as they are not paying any of their employees minimum wage. This is because the employ pilots who are highly trained, skilled and specialised. This tells us that we can be almost certain that PP’s employees are not being paid minimum wage. This is why it would not impact HH.
Think about HH plans to expand into the Tourist market - could this be affected by NMW? How?

A new environmental tax would affect HH as the more sales they make, the more they fly and the more environmental tax they have to pay. This could result in a cash flow problem if not enough sales are made to compensate for this new tax. However, something they could do is raise prices to make up for money being used for tax. Despite this, it could still result in a decrease in profits as customers might go to different companies that still offer lower prices. Since HH offers an elastic product I do believe that this will have a very big impact since customers are looking to enjoy the service of the helicopter, therefore being elastic.
Raising prices to absorb the TAX increase is certainly the easiest solution - do you think this would have a huge impact on revenue and profits? (Think about the TYPE of product HH offer? Inelastic or Elastic?)

In conclusion, a new environmental tax would affect HH the most out of all these points. This is because if they don’t raise the sales price they could result in less profit and if they don’t they will most likely result in a loss of profit if they don’t have enough customers. A new environmental tax would definitely affect HH more than minimum wage being increased (since HH isn’t paying employees minimum wage anyway); and more than advertising dangers (as customers would most likely know the risks of flying in a helicopter if they are looking to fly in one).
A clear and concise conclusion, well done. However, please redraft the answer to include comments on the feedback I have made - does this change your conclusion (it may not...) (10/12)

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Safety Ad:
Do you think that there are any PESTLE factors to consider when identifying and notifying customers of potential dangers - how would this effect the price of a Luxury Product?

NMW 10%:
Good comments regarding the salary required for skilled workers, BUT HH GROWTH PLANS TO OFFER TOURIST FLIGHTS - could be a consideration which would be impacted by the NMW? Could this effect profits at all?

Tax:
Really well identified and applied answer regarding small price increase and socio-economic group; well done. Think about the CSR opportunity too - could this even INCREASE demand/market share and reputation?

Conclusion:
This is a well-written conclusion but it seems to go against the comments you have made throughout the answer(?)
Please redraft including answers to my feedback and perhaps consider a different conclusion which is fully supported by the arguments in the three main paragraphs? (8/12)

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Risk of Flying Ad:
Consider how the ad campaign could be a potential opportunity to develop positive customer perception/relationships for honest service provision - how might this translate to increased market share and revenue (profit?)
NMW 10%:
Some VERY good comments regarding the salary required for skilled workers, BUT CONSIDER HH GROWTH PLANS - how might offering tourist flights be a consideration which would be impacted by the NMW? Could this effect profits at all? (Think about variable costs and total cost of production).
TAX: How might HH use this as a chance to display positive branding (CSR) and develop customer perception so as not to disproportionately impact profits? Also, consider the TYPE of product - inelastic or elastic? You have made some excellent calculations and comments here ... don't forget to apply CSR and Inelasticity too!

Conslusion:
A very good and well justified conclusion but I would like you to redraft the answer by considering my comments here and then amending the conclusion if necessary (comments about demand for example) (10/12)

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The risks of flying must be displayed on all advertisements: This will not affect HH's profits too much because most people are already aware of the risks and this would just be an ethical regulation they have to follow. It may prevent some customers from flying, which could over time reduce profits, but it won't have a huge impact on HH's business.

What type of product do HH provide (think about the PRICE of the service - would profits be hugely affected by the safety precautions or is the product highly-priced already?)  The helicopter trips that HH offer is already quite expensive so they would not have a problem spending some of their profits to get these safety precautions. It may also bring them positive customer perception for providing the precautions, which could result in more customers coming in overtime.

Minimum wage increased by 10%: This may take a huge toll on the business's success. HH already spend a lot of money in regards to fuel and the helicopter itself whether this is by loan or lease, the cost is high. There will be many people in the business working on minimum wage (e.g. people cleaning the helicopters, etc) so increasing this by 10% will put a strain on HH as they would have to use their profits to pay their workers, this may even lead to some redundancies in the business. However, as it is a variable cost, it may motivate workers within the business to work harder to get paid more and as they can pay high wages to those working more throughout the day (e.g. the actual pilot), they may be able to increase the minimum wage and still be a successful business.
Excellent answer - try to use Key Terms such as Fixed or Variable Costs...?

Environmental tax: This may affect the business as HH may need to increase their prices, which will result in a loss of customers as there will be less demand for the service. Also, if HH decides to increase the duration or distance the helicopter travels, passengers will need to pay more tax. This will affect the business in the long run. On the other hand, seeing as the price for a flight may already be quite expensive, people may not be too bothered to pay a little more as they know they can afford it. The inelasticity of demand shows that this is a luxury good. The people who need to go to these business meetings and tourists who have high customer perception of the business will be willing to pay for the service and demand will stay the same.
Again, the price will affect demand but to what extent (luxury items may be price inelastic?)

Conclusion: I think the environmental tax will affect HH's business the most because it creates a higher chance of their business failing in the future. Demand will decrease as prices go up and HH will have no control over the tax so they would have to think of an alternative. They will definitely lose customers, putting the business at risk of failure.
Possibly the least impact given the TYPE of product (inelasticity of demand) please add comments and key terms as mentioned above and then redraft the conclusion - Your comments on NMW prove to have the biggest impact. (9/12) Redrafted conclusion: The increase in minimum wage will impact HH the most as it may lead to redundancies and a few struggles but overall it will motivate existing staff and that can lead to better customer perception and feedback and it may help HH's business be successful for quite a long time in the future.

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The risks of flying must be placed on all advertisements- this would affect the company due to the fact they could just perceive the advertisements as a 'joke' due to the fact they are trying to promote their company but I'm putting dangers on the advertisement. Customers would just ignore the advertisement and will walk away. However, if somebody has already had an experience with a helicopter before, they probably already know there's a possibility of crashing but they take the risk of flying anyways. The negatives of flying can bring the profits down if customers and nervous to take the risk.
Do you think that there are any PESTLE factors to consider when identifying and notifying customers of potential dangers - how would this effect the price of a Luxury Product?

The minimum wages increased by 10%-  If the minimum wage is increased by 10% it will have a big effect on the company due to the fact they'll be lots of people in the company that work on minimum wage. HH could have lots of people involved in the company you work in a minimum wage so it will take a big margin of HH's profit.  However, it won't make a difference for the managers and helicopter pilots as they will already be working well above minimum wage anyways.
Rather than 'take a margin of profit' try to explain this with the term 'Variable Costs' and/or 'Costs of Production'

A new environmental tax is introduced of $1 per kilometre per tourist-  this shouldn't play that much effect on profit due to the facts if customers want to go on a helicopter flight they will pay the fee set already and they won't think about the price that was set before due to the fact they just want to go on the helicopter ride and experience it for the first time or they are just used to flying it for their job to workplaces.  However, this could affect people that are running on a low spend amount or have less money to spend on helicopter rides. Tourists could have a certain amount of money they can spend and they don't want to spend the extra amount of money that is charged and could lead to tourist's flying fewer kilometres which could lead to HH losing profit.
Think about the CSR opportunity that HH could use to justify the higher prices? Could this have a positive effect on demand???

In conclusion, I think the risks of flying being placed on all advertisements would affect the company the most. Advertisement changes will affect the company's most in my opinion due to the fact that the company is not getting any customers the other two problems will be irrelevant due to the fact you new customers to gain profit. If you are increasing the minimum wage by 10% and introducing a new tax of $1 per kilometre per tourist it will not affect the business at all if there are no customers.  So overall the risks of flying being placed an advertisement will affect HH profits the most because if there's a lack of customers they'll be a lack of profit and the other two problems wouldn't come into to play.
NMW of 10% will effect the Cost of Production (see comments on this paragraph)

*A good effort Bradley, please see the comments and redraft to include answers to the comments. (8/12)

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INSERT/CASE STUDY

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Question 4b

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Weds 12th Feb Yr 11 Bus. Gp 1
Since we have been considering Government Objectives and External Factors lately (PESTLE) I would like you to draft an answer to Question 4b of the HH Exam Paper (below). Please try to complete the answer without referring to notes or learning resources where possible.

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Explain the difference between Leasing and Hire Purchase. Which would you recommend? Hire purchase is when the person who is paying for the asset is allowed to buy the equipment once the final instalment is paid. They then become the owners of the equipment. Whereas when you lease assets you do not have the option to purchase the equipment. I would recommend hire purchase as the buyer has the option to purchase the asset and the right to withdraw their claim to it. Although when you lease you can spread the cost over a long period of time and upgrade to latest technology once the period of leasing is over, hire purchase provides a choice that leasing does not.

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Here's my feedback on student 2 and 4
(The student 1's answers were about niche markets, think it is from 1b of the same case study)
Very thorough feedback and some excellent comments and supports Steven, well done.

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Student 2 and 3 Thanks Bradley. I'll take a read through and respond as soon as I can - a full schedule today!

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Hi guys - I know that some students are on different time zones and finding it difficult to post during the CT sessions. Please ensure all work is posted before the end of the dat and I can respond and feedback over the weekend. Thanks

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student 2 & 3

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Student 2 and 3

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Student 2 and 3

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2 b) consider the two options for HH’s additional helicopter. Recommend which option Harry and Fred should choose. Justify your answer.

Student 2

Option A: “with this option, HH can either purchase a small helicopter for $2.4, for 5 people. Even though they cannot carry as much, fixed cost is lower, and their operational costs will decrease. (good analysis: ) They also have the option for a loan, ( good analysis: ) it could benefit HH as they can buy loan over 10 years. (good application: ) And the interest rate is low as well. “ (lack of disadvantages: Fewer passengers than the alternative option, Fewer paying passengers giving lower revenue  )

OptionB: “ with a bigger helicopter, they can carry more passengers per flight, (good analysis: ) which could increase their revenue. However, the helicopter will cost $ 5.5 m and the fuel cost is higher as well. ( good analysis: much higher cost than Option A so it is a disadvantage) The lease arrangement will only best for 5 years and HH will have to pay again after 5 years. ( good evaluation: maintenance)”

Recommendation: “ Option A is better because HH can pay for the loan over a longer period with low interest rates. Even though the small helicopter can only carry 5 people per flight. Fuel cost is lower which means their total cost will be lower as well, leading to an increase of revenue for HH. “

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feedback for student two

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Student 4

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Student 3

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Student 2

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Student 1

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TASK 2) Pick 2 students' work and use the attached Markscheme to assess their answers and develop your own knowledge of the subject content and the Assessment Objectives.

a) Answer ALL answers for BOTH STUDENTS
b) Give examples of where EACH STUDENT has illustrated good Application, Analysis or Evaluation (You can do this by copying a part of an answer and commenting on why it is a good example of App. An. or Ev.)
c) Give assistance on where EACH STUDENT has NOT illustrated good Application, Analysis or Evaluation (You can do this by using the markscheme to provide an exemplar answer)

Please take your time to produce positive comments and support and post your review at the end of the lesson - i will be online to provide support should you need it.

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Fri. 7th Feb Yr 11 Bus. Exam Review CT 8
TODAY'S TASKS:
TASK 1) Look at the CHALLENGE QUESTIONS I have posted to your previous work. Respond to the questions and then MARK THE BOX PURPLE so I can reread your updated work. (You will need to scroll up the Padlet thread a little as the other class are using the same Padlet - giving us the chance to share and comment on work across the year group)

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Some good work being done and excellent responses. Where you are responding to a challenge/extension question in the same lesson, please EDIT the comment and past your response under the questions then MARK IN PURPLE (see Leone's post...) Thanks

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Anakin 1c challenge question

Benefit 1: communication is quicker and more accurate

Explanation: each message has fewer levels to pass through and it goes through fewer people. This increases the company's efficiency, and with higher efficiency, it will increase the quality of products. Market share will increase as well because they will generate more sales with a high-quality product.

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Extended Question: 
A flatter structure can add value to the company. Firstly, communication is faster and more accurate. It helps improve the efficiency of goods production and avoids many unnecessary mistakes. Economies of scale may be achieved so more profits will be made. Secondly, a flatter structure of organisation structure can make top managers more in touch with subordinates. If managers have more contact with employees, they can better understand the production situation and come up with improvement plans to help increase the value of the company's products. Finally, wide span of control means employees feel trusted and take more decisions by themselves. Once the employees are motivated, they can contribute lots of ideas to improve production processes and develop their products. It helps the firm increase market share and expand its existing operation.

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1.c)

Benefit 1: The organisation chart shows how everybody is linked together in the company.

Explanation: Because of the organisation chart, each employee is clear about their authority and know who to ask if they have any problems, it will increase the LEK’s efficiency of producing goods such as cell phones and televisions. The organisation chart makes the LEK has closer supervision of employees, so the quality of products will be improved. Therefore, if the quality and quantity of products increase, the market share of LEK will increase as well.

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In my opinion, I think that tall organisation will result in better quality production because it is easier to see the hierarchy of the company which can tell the employee who to report to in case if anything is wrong, if they are stuck or have compleated their product.

Do you feel that a tall structure is best for levels of motivation or is it a more autocratic style of leadership? How might this affect quality?
A tall structure is the best for the level of motivation in the company because it can show a potential career path and shows the internal promotions available, this can positively affect quality because it relates to Taylor's theory of making more money and achieve the two top levels Maslow's theory self-actualisation needs and esteem needs. However, it can be argued that it is autocratic because it does show who has the power.

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Thurs. 6th Feb Yr 11 Bus.  Exam Review CT 7

Good afternoon Year 11. Thanks for all your hard work last lesson.

I know that reviewing and redrafting past paper answers isn't quite as riveting as the NBA or Netflix, but i can see that people are really making a strong effort to redraft and raise attainment... this gives me a really good chance to target specific subject content and exam skills and question and challenge each of you individually and this practice WILL HELP YOU IMPROVE AND DEVELOP YOUR KNOWLEDGE AND EXAM SKILLS. So please do keep up the good work.

TODAY'S TASK:
Today I simply want you to take some time to RESPOND to the questions I have 'marked' your work with.

Look at the CHALLENGE QUESTIONS I have posted to your previous work (You will need to scroll all the way up as this thread has both Business Classes in - this way we may be able to see and share ideas across the whole year group...) LOOK FOR YOUR LAST POST AND SEE THAT IT IS MARKED IN ORANGE WITH AN EXTENSION QUESTION - Respond to the questions and then MARK THE BOX PURPLE so I can reread your updated work.

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Deborah: Electronic twice? Try to identify the SPECIFIC electronic form of communication - there should be 6 DIFFERENT methods.  Answer: One is through the use of a website and the other is through email.

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Dina 3. one to one ?????
Not quite - how can you speak to someone but NOT face-to-face?

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.dina Please identify what these forms of communication are

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Can 'Yoo' include which part of the answer are App. and which are An. please Steven
1. Email/Newsletter
2. Website/Social Media
3. ?
4. Website/Newsletter
5. ? Emails
6. Newsletter/Subscription

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AMAYA-   1. verbal 2. Electronic 3. Verbal 4. Newsletter 6. electronic Electronic twice? Try to identify the SPECIFIC electronic form of communication - there should be 6 DIFFERENT methods

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1. verbal 2. electronic, email? 3. verbal/electronic (a FAQ bit in their website?) 4. electronic newsletter/website 5. electronic 6. newsletter Consider the form of communication for q5  Maybe they could have an online noticeboard?

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Well done, please identify the Application and Analysis points in each answer

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dina.                                                              a suitable method of communication for LEK is one to one ( verbal communication) because they sell high order goods that are expensive, so the customer willl want to know the details and different aspects of the product explained to them and demonstrated.                                                                                                                                                                           another suitable method of communication is through emailing a newsletter to the customers. it will help as they are a competitive business so they will want to update their customers on the latest models of their products

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why are the questions cut off/I understand now sorry
What do you mean Ashton? The questions you need to answer are there...

Ashton, please complete the tasks from last lesson and submit your comments TODAY (Feb 6th)

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Please take 25mins to complete the task on Question 1d. You have until 0915 to complete and post your answers - PLEASE DO NOT POST YOUR COMPLETED TASK UNTIL 0915 (Don't make it easy for Bradley...)
Thanks

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Span of control is the number of workers a manager is directly responsible for.                                                                         1c) Benefit 1: Workers feel a sense of belonging   Explanation: Workers at LEK can see which department they are in and their position within the company and it makes them feel valued and may eventually motivate them to work harder.                                  Benefit 2: Communication will be quicker and easier  Explanation: The chart will clearly show where each department is and who works there. So, it will make it a lot easier for people to know who to contact which allows them to get their job done quicker, ultimately helping the company produce more output.

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AMAYA

Question 1c)

Benefit 1: Better communication

Exp: when a problem arises workers will know exactly who to talk too to get this problem solved. Since DXE has 80 stores to run organisation is is crucial for this business

Benefit 2: Workers have belonging

Exp: Since there is a chart workers know exactly where they stand within the firm. This could motivate them to work harder in hopes of getting promoted and moved up the chart.

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Benefit Exp 1:

Since the area of responsibility is divided up clearly within the org chart, LEK's employees know their aims and objectives clearly, may lead to increased motivation

Benefit Exp  2:

Since the org charts illustrate the span of control, the director/managers can easily know if a employee for a manager is being overloaded with work, this will allow them to better manage workload

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Copy and past the following in to a Word document and complete the task:
1 …could be targeted at individual customers, who are interested in different electrical products.
2…many people have access to it these days so it would be a direct way of telling customers about the latest offers.
3…as two-way communication would allow LEK to explain specific product details to customers who could ask questions.

4 …would allow customers to access instant news about appliances, without having to spend a lot of money on advertising.

5 …can be used to inform existing customers in the different regions [app] so business is able to control the information that is given out.

6 …to inform customers about the latest technology or appliances to keep them up to date with what is available.

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Dina        another benefit is that the communication is better because every employee know who to do to that is responsible for their actions

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The possible answers are listed below.
I have taken out the form of communication (Kn.) and included the App. and An. part of the answers.
Your task is to go through each of the potential answers and Firstly identify the communication methods and THEN identify which part of the answer is APPLICATION (By highlighting that part of the answer in Orange) and identify which part of the answer is ANALYSIS (By highlighting that part of the answer in Red)

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Question 1d also saw some of us struggling to effectively identify AND APPLY AND ANALYSE the best communication methods for LEK

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Amaya- The span of control describes the number of people who follow direct orders from a higher ranked employee. Therefore they are in direct control of employees in their span of control

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Span of control refers to number of people who respond to and follow direct orders from a superior; therefore they are directly responsible for the employee under their span of control

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dina       1C).  helps manage responsibility       as the manager does not have to have responsibility over every employee and instead focus on the busines
Can you identify a potential issue with having many different departments in an organisation?                                             its may hard to control as there is a lot of departments between the manager and last employee , the message from the manager may never reach the other employees

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The span of control is the number of employees a manager is directly responsible for.                                                   1C)faster communication - employees know who they must report to so there is less time taken for information to reach the intended person.                                           there is a sense of belonging - employees know where they stand in the company; who they report to and who reports to them. It makes them feel as though there is obvious control and therefore makes them more motivated.
How might org charts link to Specialisation?
They might link to specialisation as there are clear departments in which employees will work for depending on their skills and qualifications.

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Dina.         span of control is the amount of people that the manager has direct responsibility for

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BRADLEY                                                                                                                                                                                          'Span of control'- The span of control is the number of subordinates for whom a manager is directly responsible for        1c) Benefit- Communication is quicker                                                                                                                                                      Explanation- If there's an organisational chart the people working in the company have to go through fewer levels to communicate which makes communication quicker and more efficient                                                                                         Benefit- Gives the workers an idea of where in the job they are located                                                                                         Explanation- It helps the employee work harder towards their goals if they know what level they are at and how they can improve

PLEASE FOLLOW THE INSTRUCTION FOR THIS TASK
1d) The two methods of communication that LEK could use to communicate with customers could be different types of advertisements such as posters, newsletters or emails. Contacting employees via social interaction is the quickest and most efficient way because most of your target customers will be using social media so it will be a quick way for them to get new updates and promotions. LEK could also make a direct hotline if any customer wants to get in contact with them to reserve products or ask questions about LEK products or get any recommendations from the employees

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The average (mode) score for Question 1(C) was only 2 out of 4.
Read through the attached material from the Text Book and redraft an answer which clearly identifies and LINKS (explains) two benefits of having an organisational chart
[Note: for 4 marks, the answer doesn't need to APPLY exclusively to the company in the question but you MUST LINK EACH BENEFIT WITH A RELEVANT ANALYSIS]

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Weds 5th Feb CT1&2
We all seemed to struggle a little with some of the questions which followed this initial case study in Paper 1 of the Mock. So let's start by taking a look at the SUBJCT KNOWLEDGE needed to answer the questions which follow.

Task One: Research and identify a definition for the term 'Span of Control' [Note: you must include term 'DIRECT' when mentioning responsibility]
ADD YOUR ANSWERS BY COMMENTING IN THIS BOX...

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Brian

Definition of “span of control”

The number of subordinates working directly under a manager

1.     c

Benefit 1: fast and accurate communication

Explanation: each message can be efficiently delivered to subordinates, this reduces time and miscommunications between workers

Benefit 2: workers get subordinates

Explanation: more subordinates means that the workers need to be responsible. Responsibility motivates workers and encourages them to work hard

Identify which structure, Tall or Flat, would MOST likely result in better quality production. Explain your answer.------------------------------------------I think that short structure is better for increasing the quality of the production. This is because there are fewer levels to pass through so it is faster to communicate. Faster communication let workers have more time to adapt the products in the shape of what the employer wants, so it improves quality. also, Communication is accurate as it is almost directly from the employer. workers know well what they need to do so the quality could be improved. -------------------------------------------------------------------------------------------------------------------------------------EXTENSION TASK - Reconfigure the LEK Organisation Chart so that it is a TALL Structure with a long chain of command. Identify the potential benefits and negatives of this...LEK Organisation chart has a tall structure.

The potential benefit is that managers have workers working for them so they may get responsibility and become motivated

The potential negative is that the process is so long to communicate so it may consume time and communication could be inaccurate.

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Simone

Define span of control:

The workers that a manager is directly responsible for, the number of subordinates directly under a manager

Benefits of having an organizational chart:

Benefit 1: Communication is quicker and more accurate

Information has fewer levels to pass through before reaching the intended person, reducing time taken and miscommunications, very important in technology industry

Benefit 2: Everyone is in a department, sense of belonging

Employees know who they take orders from and who they control, helps them stay motivated as it is more organized and well controlled

How might benefit one link to Higher prices being justified? (Explain)
Faster and more accurate communications can justify higher prices as it increases efficiency in the business as well as helps produce higher quality products.
Use the words 'Job Satisfaction' , 'Quality' , 'Efficiency' and 'Revenue' to give a full explanation of Benefit 2.
Having a sense of belonging will help employees be more satisfied with their job, increasing motivation and allowing employees to produce higher quality products, increase efficiency and lead to higher revenue for the business

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Leone - 1C 1)Gives workers an idea of where they are within the organisation, Shows links and relationships between different departments within the organisation . 1)Easier communication within the organisation, Because the workers will know to contact for anything or help by looking at the organisational chart

Identify which structure, Tall or Flat, would MOST likely result in better quality production. Explain your answer.

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Leone - Definition of Span of Control - the area of activity and number of functions, people, or things for which an individual or organization is responsible.

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Thanks for your hard work and comments today guys. I know this isn't the best way to engage in lesson - so well done to those of you who participated. I will arrange more sessions reviewing the Mock exams for next lesson. Please continue to use this link to visit the tasks and conversations. 'See' you next lesson. Mr Rolfe

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Wendy---Extension Task

Potential benefits: It is easy to manage and control. Tall structures provide distinct layers with clear responsibility to allow for close supervision of employees.

Negatives: The communication and decision-making slows down. Top managers are less in touch with subordinates because there are more levels. Employees may be demotivated because it is hard for them to get involved in decision-making.

A really good answer Wendy, Well done.
QUESTION: Explain how a flatter structure might add value to the products of a company...

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Mattia –

Span of control (GCSE definition): The span of control is the number of subordinates for whom a manager is directly responsible.

1(c)

Benefit 1- Easier to communicate with workers in the same branch

Explanation- The workers will have a clear understanding of who to contact if they need help. This allows the communication to be easier and smoother resulting in less misunderstandings between workers.

Benefit 2- Each worker feels like they belong in their respective department

Explanation- The workers will be more satisfied with their job as they have smaller teams within their department. This can lead to healthy competition between workers which will boost efficiency meaning an increase in quality and quantity of production. In return LEK will have increased revenue without increasing cost of production and in turn profit.

Use the words 'Job Satisfaction' , 'Quality' , 'Efficiency' and 'Revenue' to give a full explanation of Benefit 2.

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Angus -
Benefit: Managers are responsible for less people so span of control is less for each manager
Disadvantage: Messages/information will take longer to be passed down so the information may be changed slightly or emergency information may take too long to be passed down which may reduce efficiency or job satisfaction. If information that is passed down becomes slightly wrong or  altered then this is likely to decrease efficiency as tasks are not clear to employees. Also, this may result in an increase in cost of production, as the workers may not have understood what to change, which therefore results in an increase in variable costs.

Use the words 'Variable Cost' , 'Cost of Production' and 'Efficiency' to develop a full explanation of the Disadvantage you have given.

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Wendy

Definition of Span of control: The span of control is the number of subordinates for whom a manager is directly responsible.

1. (c)

Benefit 1: The organisation chart shows how everybody is linked together in the organisation.

Explanation: Each employee can see their own position, who’s authority they are under and who they have authority over. Therefore, they know who to reach when they have problems.

Benefit 2: It gives everyone a sense of belonging.

Explanation: Once employees in the LEK become familiar with the organizational chart, they will motivate themselves to move on to higher positions.

Use the words 'Efficiency' 'Quality' and 'Market Share' to develop a full explanation of Benefit 1

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EXTENSION TASK - Reconfigure the LEK Organisation Chart so that it is a TALL Structure with a long chain of command. Identify the potential benefits and negatives of this...

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INCLUDE YOUR NAME WITH EACH POST PLEASE

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Anakin 1c)

benefit 1 : communication is quicker and more accurate

explanation: each message has fewer levels to pass through and it goes through less people

benefit 2: span of control is wider

explanation: each manager has less responsibility and they don’t have to do everything by themselves

Use the words 'Efficiency' 'Quality' and 'Market Share' to develop a full explanation of Benefit 1

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Wesley  1c.)Definition of span of control: the area/amount of subordinates a manager is directly responsible for in a hierachy

c.) Benefit 1: Workers can communicate faster
With organisational charts it can be displayed which communications links can be used by workers to contact their managers.

Benefit 2: Gives workers sense of belonging
Being able to see what department a worker belongs in gives a sense of community to the workers

How might benefit one link to Higher prices being justified? (Explain)

Companys with many workers and managers will have a larger hierachy and so communication may be costly (for example a globalised firm or shipping and logistics). With this high cost a firm can then justify increasing prices for their products and services

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Anakin
Definition of Span of Control
The number of subordinates that a manager or supervisor can directly control.

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Angus - Definition for Span of Control