Producing complex business 1 documents · Producing complex business documents ... in the school...

1

Unit

1Producing complex businessdocuments

1Unit 1 Answers

1Draw up an agenda for the Governing Body of Parker Primary School.

PARKER PRIMARY SCHOOL

Meeting of the Parker Primary School Governing Body to be held on 8 Septemberin the school canteen at 7.30 pm.

AGENDA

1 Apologies

2 Minutes of previous meeting

3 Matters arising

4 Computer suite presentation

5 Playground supervision

6 Changes to LEA funding

7 Any other business

8 Date of next meeting

Draw up a chair’s agenda.

9Other secondary sources of information:

trade magazines

business federations and associations

tourist information offices

embassies

consultants

government agencies

electoral roll

telephone directories.��

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2 OCR Administration 3

PARKER PRIMARY SCHOOL

Meeting of the Parker Primary School Governing Body to be held on 8 Septemberin the school canteen at 7.30 pm.

CHAIR’S AGENDA

1 Apologies

No apologies have been received to date.

2 Minutes of previous meeting

These will be distributed at the meeting.

3 Matters arising

4 Computer suite presentation

Helena will give a short presentation on the new computers that have beenchosen for the computer suite.

5 Playground supervision

Yasmin wishes to discuss the possibility of devising a policy on playgroundsupervision. There have been a number of incidents related to this in recent weeks.

6 Changes to LEA funding

Manjula will explain the changes to the funding. She feels that these may affectthe school budget.

7 Any other business

8 Date of next meeting

Suggest the first Thursday of next month – 5 October.

2Separate the main points and place them in order of importance.

Mrs Sampson bought black leather lace-up shoes for £45 one month ago.

Shoes were not waterproof and leaked.

Customer requested a full refund.

Customer was refused refund by Sandra and Rose.

Customer has visited the shop on three separate occasions regarding this problem.

Rewrite these notes putting the points in order of importance.

Mrs Sampson brought the shoes back to the shop in a worn condition with the stitchingbroken. Rose, the store manager, offered her a £20 credit note, which Mrs Sampsonrefused. Mrs Sampson caused a disturbance in the store and threatened the staff with legalaction. These particular shoes have sold well with no other complaints.

Page 34

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3Unit 1 Answers

MEMORANDUMMEMORANDUM

To: Peter

From: Sharon

Ref: SS/JS/Plymouth

Date: 25 September 2004

Subject: Mrs J Sampson – Customer Complaint

We have received a letter of complaint from Mrs J Sampson regarding a pair black lace-upshoes she purchased at our Plymouth branch for £45.

Mrs Sampson claims that after owning them for approximate one month the shoes leak andshe has requested a full refund. Rose, the store manager, refused to refund the full purchaseprice because the shoes were very worn. Instead, she offered a £20 credit note.

Mrs Sampson has visited the Plymouth store on three occasions requesting a full refund andhas caused a disturbance in the store, threatening legal action.

We have sold many pairs of these shoes but have not received any other complaints. I wouldbe grateful if you could advise Rose on how to deal with this complaint. A copy of the letterreceived from Mrs Sampson is attached for your information.

Enc.

Rewrite the following text to give it a more professional feel.

Thank you for your letter. I have sent arranged for some information about our company tobe sent to you, which I hope you will find interesting.

Our goods are very popular and have been selling well. We pride ourselves on ourcustomer service, which we feel is extremely important.

I am sure that you would enjoy dealing with our company. I hope you will give us theopportunity to show you just how efficiently we operate. If you would like any furtherinformation, please do not hesitate to contact me.

Page 37


Mrs K. Pritchard19 Copythorne CloseTruroTR1 3MO

25 September 2004The ManagerFashion Ware54 High StreetTRUROTR1 5NE

Dear Sir

Pure-Linen Dress

I recently purchased a pure-linen dress from your store to wear to a wedding on Saturday 12 September.The dress, which cost £185, is of very poor quality and I am very disappointed with my purchase. Thestitching of the hem broke on the first wearing and, when I repaired it, I noticed that the stitching on theside seams was very loose.

When I machine-washed the dress in accordance with the instructions on the care label it shrank and isno longer wearable.

As I have only worn the dress once, I would be grateful if you could send me a full refund. The dress isenclosed for your inspection.

I look forward to hearing from you.

Yours faithfully

K. Pritchard

Page 40

Page 411 Lucy was late; however Ismail arrived on time.

2 I enjoy travelling, but I do not like hot climates.

3 The sun is shining, and there is not a cloud in sight.

4 The washing machine is not working properly, so it needs to be repaired.

5 The chairs are old, but they are very comfortable.

5Unit 1 Answers

Fashion Ware54 High Street, TRURO, TR1 5NE

Mrs K. Pritchard19 Copythorne CloseTruroTR1 3MO 27 September 2004

Dear Mrs Pritchard

Pure-Linen Dress

Thank you for your letter of 25 September regarding the pure-linen dress you purchased from FashionWare recently. I am sorry to hear that you felt the garment was not of the quality you would expect fromour company.

I have examined this garment and agree that the stitching is loose. A cheque for £185, in full refund ofthe purchase price, is enclosed.

May I take this opportunity to apologise for the inconvenience you have been caused. I do hope that youwill consider purchasing from Fashion Ware again in the future.

Yours sincerely

David LandhamCustomer Service Manager

Enc.

Sentence Number Subject Verb

1 Cassie won2 members voted3 documents are4 opportunities occur5 journey takes6 Bristol has7 telephone has rung8 Lorna was9 waste paper be10 skirts are

Lucy and I went for a long walk.

2 Pam and I are going to the cinema tonight.

3 A solicitor must check his or her work very carefully.

4 The business employed twelve members of staff in its despatch department.

5 I apologise for the poor standard of customer service

or

We apologise for our poor standard of customer service.

6 Mark asked Milan if he could stay at Milan’s flat next weekend.

or

Mark asked Milan if he could stay at Mark’s flat next weekend.

7 It was Gill who forgot the lunch.

8 Here is the book that I lost.

9 Julian is he person who leaves the bathroom in a mess.

10 Simon is someone whom I would love you to meet.

Page 461 The company is doing well this year.

2 Carly and George are going to the cinema later today.

3 We were waiting for Sam to arrive for over an hour.

4 The yacht, along with many others, is moored at the marina.

5 Is either of these books yours?

6 On the table were a cup and a plate.

7 The magician and his helper were given a round of applause.

8 His daughter, as well as mine, is in the college choir.

Page 471 We cannot agree to your request.

or

At the moment, we cannot agree to your request.

2 I refuse to do this kind of work.

3 It is a simple task.

4 It is annoying to have to work late this evening.

5 I dislike working with Pete because I find him irritating.


Kevin was late home from work.

“Where have you been?” asked his wife, Trudy. “I’ve been worried sick about you.”

“What’s the big fuss?” said Kevin, “You know I had to finish that report for Harry. I told youthis morning. You never listen to me.”

Trudy hadn’t listened to him that morning. She had been too busy getting the childrenready for school, preparing packed lunches, feeding the dog, loading the washing into themachine and trying to get ready for her own day at work. Kevin, in the meantime, hadbeen enjoying a leisurely breakfast and reading the morning newspaper.

“Sorry,” she said. “I had forgotten you were so busy.”

Page 49The chairman asked if there were any questions. Marcus asked how the changes would beimplemented in a short space of time. Richard told the meeting that the staff would have towork extra hours, including weekends, and that the work would take about six weeks.

Page 501 Mark and Patti are going to visit Nepal next summer.

2 The Managing Director, Alex Grey, made an announcement to his staff.

3 My birthday party is going to be held at the White Horse Inn.

4 The University of Wales offers a wide range of courses.

5 The hotel is famous for its wonderful French cuisine.

6 Where will you be spending Christmas Day this year?

7 I could meet you on Thursday 2 May.

8 The Prime Minister visited the Royal United Hospital last week.

Page 511 Max is a tall, blond and handsome boy.

2 My mother, who is quite elderly, will be visiting us soon.

3 The address is 10 Lavender Grove, St Ives, Cornwall TR3 8NO.

4 It seems to me, however, that you do not agree with the chairman.

5 To make a cake you will need flour, sugar, milk, butter and eggs.

6 Josephine, our hairdresser, works from her home.

7 The books should be sent to Paris, France.

8 As far as I know, the trains are running on time.

7Unit 1 Answers

“Goodness me!” he said. “I can’t believe my eyes!”

2 He asked me if I would like a cup of tea.

3 Please excuse me, I have a dreadful cough.

4 He went to the cinema; his sister went to the park.

5 Their itinerary included: Paris; Bonn; Munich; Rome; Greece; Amsterdam and Venice.

Or you could have used semi-colons to separate the items in the above list. However, thiswould be more usual if the list were more complicated, for instance:

Their itinerary included: Paris, taking in the Eiffel Tower and the Louvre; Bonn, to seeBeethoven’s house; Munich, in time for the Oktoberfest; Rome, overnight; Greece, visitingseveral ancient sites; Amsterdam and Venice.

Page 541 Your coat is lovely; it’s new isn’t it?

2 Don’t do as I do, do as I say.

3 David’s left his coat here.

4 The dog hurt its front paw whilst out walking.

5 Please take this to St Thomas’s Hospital.

6 Let’s have a picnic tomorrow.

7 The ladies’ bags were left on the desk.

8 The companies’ aims were very similar.

9 Darius’s car is bright red.

10 The women’s career prospects are particularly good.

11 The children’s toys were left all over the floor.

12 The director’s home was very luxurious.


9Unit 3 Answers

Page 591 Elisha accepted the gift from Ben.

2 “Welcome to our new home,” said Daniel.

3 Ellie searched in vain for her lost purse.

4 “I am referring to you,” said the teacher.

5 We will be advertising the new job in the local paper.

6 Maybe you should have a course of antibiotics if you are feeling unwell.

7 I am offering you the opportunity of a lifetime.

8 We need to order some more stationery.

9 You will need to state your weight and height.

10 How many silk scarves do we have in stock?

11 The advertising company was disappointed with the response to its campaign.

12 The board of directors was dismayed to see profits had fallen.

13 Jacinder decided to hire a boat for the weekend.

14 As it was only a minor error, the driving examiner allowed Maggie to pass the test.

15 Lorna wanted to ensure that everyone checked their bags before they left the quay.

16 Harry was offered a piece of Nat’s birthday cake.

17 Ursula advised Beth to take her complaint to the principal.

18 I cannot accept your answer and would advise you to revise more thoroughly.

19 Kate proceeded to drive from her home to college.

20 The effect this will have on the new edition of the book is huge.

Working with colleagues and customers10

Unit

3Reviewing the organisation ofbusiness activities

Page 1291 The name of the risk is unlimited liability.

2 Cathy might want to be become a sole trader rather than work for a major jewellerydesigner for any of these reasons:

to be her own boss

to have control over her own designs

to enjoy the challenge of working alone

to enjoy better financial rewards

to have control over how the business runs

to choose working hours to suit

to keep all profits.

3 Disadvantages of becoming a sole trader include:

long hours

risk of personal savings and assets if business fails

having to make decisions in areas where you might not have expertise – or payconsultants to you

difficulty of taking time off

difficulty of raising sufficient cash to start the business

having no job security

not having any of the benefits of employment, such as sick leave, maternity leave,pension plan, health care insurance etc.

responsibility for all paperwork, including making returns to tax office, VAT (ifappropriate) etc.

The possible need to employ staff.

4 Cathy must do the following to ensure her business is set up according to legalrequirements:

notify the Inland Revenue

arrange to pay national insurance contributions as a self-employed person

register for VAT if expected turnover is at the appropriate level.��

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Two advantages of Callum and Anya becoming a partnership, rather than Callum

operating as sole trader and employing Anya.

Callum doesn’t have to pay national insurance contributions and tax on Anya’sbehalf.

Responsibility is shared – Anya will take more responsibility as a partner than as anemployee.

Callum will be able to leave the business for holidays, sick leave etc. He can trustAnya to look after the business.

Two sets of skills and ideas and expertise will have a vested interest in the business.

Both partners may make a financial investment to the business.

2 Two disadvantages to Callum of having Anya as a partner.

Callum will have to share any profits.

Major decisions must be agreed by both partners.

If Anya decides to leave the business, Callum will have to buy out her share or windup the business.

Callum will not have full control over the business.

They may have disagreements.

The liability is shared if Anya makes an incorrect or illegal decision or action.

3 Explain why Callum should insist that a Deed of Partnership is drawn up before startingthe business.

It is legally binding and can be referred to if there are any problems in thebusiness.

It will protect Callum’s investment into the business – as this is higher than Anya’sinvestment.

It will set out the liability of each partner should the business fail.

It will also set out the share of profits, salary and benefits each partner can expect.

4 Two disadvantages for Anya of becoming a partner.

She will be legally responsible for at least some of the debts if the business fails.

She may have to work long hours.

She will be jointly responsible for any staff they employ.

She will have to ensure the business operates within the law.

She will have to share the decision making and will be jointly responsible for ensuringthe success of the business.

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11Unit 3 Answers

Three advantages of becoming a private limited company rather than a partnership.

Liability is limited.

The company is a legal entity.

It is often easier to raise money.

If a director dies then the business can carry on – unlike a partnership where thebusiness has to be wound up.

There are currently tax advantages to becoming a private limited company.

Shares can be issued in different ways.

2 Explain the legal requirements of starting a private limited company.

The company has to be registered by the Registrar of Companies.

A Memorandum of Association and Articles of Agreement must be drawn up andadopted by the board.

There must be a minimum of two shareholders.

A Certificate of Incorporation must be issued before the company can start trading.

3 If Imran wanted to leave the private limited company he would need to sell his shares tosomeone else. He would need the agreement of the current board if he wished to sell hisshares to someone other than the existing directors.

Page 1351 Give three reasons why Preston Hotels would want to become a public limited

company.

To raise capital on the stock exchange.

To raise public interest and awareness.

To add stability to the company name.

To ensure the company’s financial security.

To assist the company with its expansion plans.

2 The legal requirements of becoming a public limited company.

To issue a prospectus that has been verified by solicitors to prospective shareholders.

To provide a statutory declaration.

To appoint a financial institution to process share applications.

To underwrite the share issue.

To ensure that a minimum of £50,000 share capital is available.

To apply for a Trading Certificate once 25 per cent of the shares has been bought (andpayment for which has been received).

To ensure that there are at least two members and two directors in the company.

3 The minimum number of directors required for a public limited company is 2.

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61 The difference between a multinational and a conglomerate is that a multinational trades

in more than one country whereas a conglomerate trades in many different markets.

2 Give three reasons why an organisation would want to diversify.

To ensure financial security of the company.

To expand the company.

To add value to the company.

To spread the risks if one of the markets fail.

To increase customer familiarity.

3 State three advantages of a multinational company.

May enjoy tax concessions in different companies.

Can take advantages of low labour costs.

May take advantage of low raw material costs.

Can take advantages of grants, business development loans etc wherever they areoffered.

Benefits from economies of scale.

Page 1381 Three benefits of becoming a registered charity.

Will be able to obtain tax concessions.

Can legally ask public for donations.

Can obtain help and advice from Charities Commission.

Lower business rates.

VAT concessions.

Reassurance for public.

2 Two disadvantages to Emily of registering as a charity.

Will not be able to carry on her own business of breeding dogs.

Will lose personal income.

Will need to appoint a board of trustees.

Will need to have accounts audited and submitted to the charities commission.

3 Explain the process of registering as a charity.

Will need to write a governing document and ensure that the purpose is entirelycharitable. Emily will need to ensure that the purpose of the charity fits one of the fourapproved reasons.

4 Explain the liability of trustees of a registered charity

As long as the trustees have acted lawfully and in accordance with the governingdocument then any liabilities they incur will be met out of the charities resources. If,however, they are in breach of the trust then they are personally liable.

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13Unit 3 Answers

01 Give three advantages of becoming a franchisor rather than remaining a partnership.

Will be able to use the investment of the franchisees to expand the business morerapidly.

Will be able to build a brand name and increase public recognition quickly.

Will have increased income as franchisees pay ongoing fees to the franchisor.

Will be able to retain control of business in terms of direction, ethos etc.

Will be able to increase the turnover of their own goods as these are sold to thefranchisees.

2 What will happen to the liability of Rachel and Tahmina if they become franchisors?

The liability of Rachel and Tahmina will remain unchanged i.e. they are fully liablefor the debts and liabilities of the core business. The liability of each individualfranchisee will remain with the franchisee. Therefore the liability of Rachel andTahmina will in effect become less as their business expands.

3 State three ways Global Trading will benefit financially from becoming a franchisor.

From the initial investment paid to them by franchisees.

From the percentage payments made on the sale of goods and/or services.

From the mark up on the goods supplied by Global Trading.

Page 1411 State two advantages to Max in purchasing a franchise business.

The company will already have a brand name and recognition from the public.

The sourcing of goods etc has already been undertaken.

The format of the business has already been decided.

The administration should be less difficult.

The business has been tried and tested and so the risk is reduced.

Max would benefit from the knowledge and experience of the franchisor.

Advertising and marketing may be done centrally by the franchisor.

It may be easier to raise the start up capital as the business is already established.

As training and support will be provided Max does not have to be an expert in thenew business area.

Max will be his own boss and enjoy the benefits of running his own business.

2 Explain why Max thinks running a franchise business poses less risk to him and hisfamily than becoming a sole trader.

Because the business is already tried and tested it should become a reasonablysuccessful business. This means that Max would not be risking the family’s savings andlivelihood. Max will receive training and support from the franchisor which means he isless likely to make expensive mistakes. The business should already be well-known and

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respected which means that it should be relatively easy to find customers. As franchisesare usually given their own area in which to operate, the competition for the goodsand/or services may not be quite as strong.

3 How could Max expand his franchise business?

This is more difficult, but it would be possible for him to open more franchise outlets inother areas.

Page 145/1 1 Briefly explain the purpose of a quango.

A quango is a specialist body that provides services on behalf of the government.

2 Sources of local authority funding.

Council tax.

Business rates.

Rent from business premises.

Rent from council housing.

Grants from central government.

Sale of services e.g. car parking, hire fees from civic premises, allotments rental etc.

3 The three main categories of public sector organisations.

Service providers.

Government departments.

Government-run trading bodies (public corporations).

4 Two examples of public corporations.

Royal Mail.

Parcel Force.

BBC.

Bank of England.

5 State two ways in which public sector organisations are funded.

Direct taxation.

Indirect taxation.

Government subsidies.

Sale of goods and/or services.

6 What is the purpose of a Government watchdog?

The purpose of a government watchdog is to ensure that consumer’s interests areprotected.

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15Unit 3 Answers

/2Suggest suitable methods for funding the start up of the following:

Franchise – Personal savings, borrowing from family/friends, bank loans.

Sole trader – Personal savings, borrowing from family/friends, bank loans.

Public Limited Company – Bank loans, selling shares on stock exchange, venture capitalist.

Page 145/3List three ways in which Preston Hotels could achieve growth within their existing business.

Increase the number of rooms booked.

Increase the room rates.

Reduce overheads and increase efficiency.

Increase the economies of scale.

Page 149Discuss two other ways in which Global Trading could expand without using thefranchising option.

As Global trading is currently a partnership and so additional partners could be asked tojoin the company.

It could become a private limited company and invite selected people to purchase ashare in the company.

Global Trading could also approach a business angel (or venture capitalist) for investment.

Global Trading could investigate business loans and borrow more money.

Government grants and trusts could also be investigated.

Page 1521 Explain the difference between a takeover and a merger.

A takeover occurs when a company purchases 51 per cent (or more) of anothercompany’s shares in order to take control of the business. A merger is when twocompanies agree to joint together to make one larger business.

2 Explain the difference between growth and expansion.

The difference between growth and expansion is that growth should happen annuallyand is required in order for a business to maintain its success. Expansion is somethingthat is required in order to make a business larger.

3 Give two reasons why a company may wish to demerger.

A company may wish to demerger for any of the following reasons:

to concentrate on just one area of the business – specialisation

to raise funds by selling a part of the business

to avoid rising costs��

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to increase efficiency

to increase the organisation’s value by having two smaller companies

to ensure success by separating activities/markets that are not doing well.

4 Explain the difference between a company expanding its range and diversifying.

When a company expands its range it will add goods and services that arecomplementary to the core business or uses the same manufacturing processes. When acompany diversifies the difference is radical, therefore the goods or services which areadded are completely different to the core business.

5 Briefly explain the meaning of the term ‘monopoly’.

A monopoly occurs when an organisation has 25 per cent or more of a market.

6 State three benefits to a company of merging with a smaller company.

The benefits of merging with a smaller company may include:

economies of scale

reduced fixed costs

reduced competition

larger market share

sharing of assets

more efficient operation

the potential to diversify

reduced costs of raw materials

shared expertise.

Page 154Draw up the corporate objectives you think that Phoenix Enterprises might have.

1 To ensure that they remain one of the leading companies in their markets.

2 To ensure that the company enjoys economies of scale.

3 To ensure that the management use up to date techniques and technology so that thecompany remains competitive.

4 To use the best resources and raw materials within their budget.

5 To keep costs and overheads under control.

6 To provide the best possible service to customers.

Page 155/1The strategic objectives for Phoenix Enterprises could include:

to increase profits by five per cent each year

to invest 3.5 million in training and technology over next four years

to reduce overheads by three per cent each year for next five years.��

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17Unit 3 Answers

/2 Human Resources

Keep any increase in staff costs to below three per cent for the year.

Devise a training plan for year one.

Reduce staff numbers through natural wastage.

Finance

Make available 3.5 million in four stages for training plan.

Reduce departmental budgets to achieve a three per cent saving.

Sales

Increase sales by two per cent within next three months.

Increase size of average order by three per cent within next three months.

Page 156Preston Hotels might devise the following objectives for the company:

to become a plc within the next year

to increase the number of hotels by 50 per cent over the next three years

to become the leading hotelier in the UK with a 20 per cent share of the businesstraveller market

to reduce borrowing by five per cent over the next two years

to reduce expenditure by two per cent per year for the next five years

to increase profitability by three per cent per year for the next five years.

Page 158It is important that Emily clearly explains the aims and objectives of the charity for thefollowing reasons:

so that the public know exactly what the charity is for

so that the aims and objectives meet the needs of the Charities Commission.

The objectives Emily might have include:

to increase the number of dogs sheltered to 200 within three years

to rehome 80 per cent of dogs each year

to ensure no animal is turned away

to devise and deliver an educational programme to local schoolchildren

to increase fundraising to £150,000 per annum within three years.��

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Page 1601 Emily will need to rely largely on voluntary workers and this will have a large impact on

the culture of the sanctuary. Many workers will be there because of their desire to helpthe animals, others will be there in order to fill in some time. As the work is unpaid, thecommitment to the work will be varied. It can be more difficult to impose rules andconditions on voluntary workers and this will also affect the culture. While the charityremains small there will not be sufficient funds to employ many staff, and so there maybe skill shortages.

The funds belonging to the dog sanctuary will be needed primarily to feed and lookafter the animals. This means that there will not be a very large budget for purchasingand maintaining office equipment, therefore staff will have to work round thislimitation. It is very unlikely that there will be funds available for staff training orbenefits.

2 The culture of Preston Hotels will change if it becomes a plc as the rapid growth willmean it is more difficult for the directors to keep a hands-on approach. Staffing levelsmay need to increase and the business structure may become more formal. The board ofdirectors will need to take into account the needs of the shareholders including theirdividend payments.

If Preston Hotels buys many existing hotels then the culture will change as the workingpractices and cultures of these businesses are incorporated into the larger company.

Page 162Additions to PEST.

Political

Welfare – the government may decide to make ‘unhealthy’ habits more expensive inorder to persuade the public to desist – for example, tax on cigarettes and alcohol orbanning smoking in public places etc.

Grants – central government may offer grants and incentives to businesses in certainareas of the country in order to increase trade and reduce unemployment.

Restrictions – the government may also place restrictions on where businesses mayoperate – for example, by refusing planning permission for industrial premises.

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19Unit 3 Answers

Global Trading

Our stores are an exciting and varied mix of unusual and interesting items from allover the world. We pride ourselves on our ability to source the best products fromover 30 countries. We operate on a fair trade system so our customers can restassured that our suppliers have received a fair price for their goods.

Our aim is to expand our stores nationwide and to continue to support those inother countries in their aim to improve their lifestyle and living conditions.

Government initiatives – government-funded schemes such as apprenticeships andtraining schemes to help the unemployed train and find work, could have an effect.

Pressure Groups such as Greenpeace or the Anti-Hunting Lobby may influence politicalopinion, which in turn will impact upon the business community.

Economic

Government economic policy.

Strength of sterling – this affects trade with other countries.

Level of government spending will affect many different types of business so when thegovernment decides to build a new hospital or school, or provide extra services forexample the elderly or disabled.

Fuel costs – the rise (or fall) in fuel costs has a large effect on the cost of goods andservices.

Social

Latest trends – a business will have a much greater chance of success if it is able toidentify and react promptly to trends in consumer spending.

Family trends – the way in which families operate will have an impact on businesses, notonly because of consumer spending, but also in working trends. For example, theincrease in the number of working parents means that more-flexible working hours arerequired.

Falling birthrate – this may influence a company’s long-term plans.

Changes in skill base – for example there are fewer people learning traditional tradessuch as building and plumbing than in previous years, this may lead to skillshortages.

Increased standard of living – generally the standard of living has increased over thepast 20 years and consumers expect more, both in the amount they are prepared tospend on home and lifestyle products and, of course, in the amount of money theyearn.

Technological

Changes in production methods – the introduction of new technology or methods ofworking may have a great impact on businesses, ranging from a fall in prices to morespecialist staff being required.

Life-cycle of product – this may shorten or lengthen and will have an impact upon abusiness and its market.

Research and development innovations – these may bring about new products and/orservices, changes to the way in which products are manufactured or workingpractices.

Changes in skills/crafts. As discussed in the social section, some crafts are dying outand this therefore has an impact on the way in which goods are produced. It also hasan impact on those who are skilled as they can demand a higher fee for theirservices.

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The SWOT analysis you draw up will be personal to you and your circumstances.

However, you should have included some or all of the following:

Strengths

Skills you have such as being able to drive, good at maths or English etc.

Personal qualities such determination, good communication skills, tactful, polite etc.

Weaknesses

Skills you need to acquire – learning to type, improve written communications.

Personal qualities you need to improve – being punctual, listening to others, etc.

Opportunities

These could include – having the time to attend a course, being able to use theequipment at your place of learning etc.

Threats

Your social life may well be a threat to your learning! Other threats could include notearning a wage whilst you are studying, having to arrange childcare if necessary etc.

2 PEST analysis for Max who is considering a Paper Work Franchise.

Political

The policies of the franchisor may be different from his own.

There are many rules and regulations if he decides to employ staff.

There may be some incentives or grants available for him to open a business in hisarea.

Economic

There is no competition in his area.

The business is tried and tested and so the risk is minimised.

Unemployment is high in his area thus making it easier and cheaper to employ staff.

The start-up costs are affordable.

Rents in the town are affordable.

Advertising etc. is taken care of by the franchisor.

A percentage of the profits is paid to the franchisor.

Failure of the franchisor will affect Max’s business.

May be difficult to resell the business.

Would be difficult to expand the business.

Social

Large number of self-employed people in the area that might make use of his services.

Finding business accommodation would be relatively simple.

The business name is already established.��

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21Unit 3 Answers

Technological

Training is provided by the franchisor.

Would need to keep up with new technology in terms of equipment, computers etc.,which could be costly.

Page 1681 The functional activities that Cathy might undertake on a daily basis could include:

Financial

Recording sales.

Processing payments for jewellery.

Keeping financial records.

Preparing budgets.

Paying bills.

Recording outgoings.

Advertising

Selecting advertising.

Booking advertisements.

Recording advertising analysis.

Administration

Communicating with customers/suppliers.

Filing.

Photocopying.

Keeping customer database up to date.

Keeping website up to date.

Stock control of jewellery, materials and stationery.

Sales/Order Processing

Dealing with customer enquiries.

Taking order.

Selecting goods to send.

Packing and labelling goods.

Posting goods.

Dealing with complaints/returns.

Research and Development

Recognising trends.

Designing jewellery.

Sourcing materials and suppliers.��

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Manufacturing

Making jewellery.

2 The external agents Preston Hotels might use when preparing for floating on the StockExchange include:

solicitors – to verify the contents of the prospectus

accountants – to help set the share price and to check they have sufficient funds

banks – to process share applications

insurers – to underwrite the share issue

advertising agents – to publicise the share issue.

Page 170 As the partnership is very small, Callum and Anya may wish to structure the business intotwo separate areas of responsibility – restoration and retail with the administration beingdealt with centrally for both sections.

Page 1711 Two advantages of centralised services.

Standard procedures can be used.

Less equipment needs to be purchased.

Better quality equipment can be purchased.

Easier to oversee.

Work can be completed more efficiently.

2 Three examples of possible interaction between the sales and marketing departments.

Sales can ask marketing to concentrate on specific items.

Marketing can advise sales as to the possible markets.

Sales can give marketing details of success of advertising campaigns.

3 State two advantages to staff of having centralised services.

Paperwork etc. easy to locate.

Staff become specialised in their area of work.

Page 177 1 Three things an organisation chart might tell you.

The structure of the company.

The formal relationships between staff.

The job titles of employees.

The departments within the organisation.��

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23Unit 3 Answers

2 The term ‘functional relationship’ describes how a job or department interacts withanother. For example, the human resources manager will advise managers of otherfunctional departments on matters relating to human resources as well as managinghis/her own department.

3 The difference between a ‘staff relationship’ and an ‘informal relationship’ is that a staffrelationship relates to a specific role for example, an administration officer would have astaff relationship with the administration manager. An informal relationship is a friendship(or otherwise!) that staff build with their colleagues and is separate from the workplace.

4 Two features of a matrix structure.

Staff may have more than one manager at any one time.

Managers may become ‘assistants’ on certain projects.

Staff work with people outside of their own department.

Teams are put together for specific projects.

5 Explain what is meant by accountability and responsibility.

Accountability flows upwards and this means that you are accountable to your linemanager – you must account for your actions to him or her.

Responsibility flows downwards – you are responsible for your own work and for anystaff that work below you – therefore your line manager is responsible for you.

Page 179/1Other directors that might be necessary are:

Human Resources Director

Operations Director

Production Director

Marketing Director.

Page 179/21 What is the difference between middle management and first line management?

Middle managers usually head a department whereas first line managers tend to besupervisors or team leaders.

2 Two responsibilities of a middle manager.

To translate strategic and corporate objectives into operational objectives.

To co-ordinate and monitor progress of operational objectives.

To report to senior managers.

To co-ordinate and monitor work of first line management.

3 Two responsibilities of a first line manager.

To oversee the work of their staff.

To liaise with and report to middle management.

To direct the workforce on a daily basis.��

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1 The direction of the company over the next five years would be the responsibility of

Callum and Anya.

2 The responsibility for a new shop display would be that of the shop manager.

3 The purchase of new, larger premises would be the responsibility of Callum and Anya.

4 The distribution of work in the restoration section would be the responsibility of therestoration manager in the first instance and then the ceramics and furnituresupervisors in the second.

5 The training of shop staff would be the responsibility of the shop manager.

6 The expansion of the restoration section would be Callum’s responsibility.

Page 184 1 A meeting to be arranged for three regional managers – diaries.

2 Sending customers a renewal notice – bring forward system.

3 Organising the mailing of a new brochure – checklist.

4 Organising a conference – checklist/action plan.

Page 186 The order of priority should be:

1 Ring Simon

2 Organise lunch

3 Reply to customer

4 Prepare sales figures.

Page 189 1 David can ensure he has understood the instructions by:

Repeating back the instructions to his supervisor.

Asking for clarification.

Making notes.

2 Three ways in which David can avoid interruption.

Tell his colleagues he has urgent work to complete.

Divert his calls or switch the phone to voicemail.

Ask casual callers to make an appointment.

3 The measures David should take if he cannot complete his work on time.

Tell his supervisor immediately.

Ask colleagues if they can help.

Tell everyone who may be affected.��

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25Unit 3 Answers

4 Four ways in which David could improve his time management:

Keep filing up to date – making it easier to locate papers when required.

Keep desk and working area tidy – saves time.

Make a to do list – so that work is not forgotten.

Prioritise tasks – so that urgent work is dealt with first.

Page 191 1 Four ways in which items can be recycled.

Have toner and inkjet cartridges refilled.

Use out of date headed paper etc. for scrap.

Reuse envelopes for internal use.

Remove transparent folders when archiving documents.

2 Four ways in which you can keep your work area tidy.

File regularly.

Keep only small supplies of stationery to hand.

Use trays to place work in progress.

Use desk tidies for pens, pencils etc.

3 Three measures to avoid wastage.

Check settings on printers and photocopiers before printing.

Only print the amount that is required.

Use back to back printing and photocopying where possible.

Page 195 1 Three ways in which you can obtain feedback regarding your work performance.

Ask your supervisor for feedback.

Check to see if you have received any complaints.

Review your own work for errors.

2 Two areas you should consider when undertaking self-assessment.

Skills.

Personal qualities.

3 Two benefits of having a regular appraisal with your supervisor.

You can identify areas where training is required.

You can identify your strengths.

4 Three ways in which you can undertake training at your workplace.

By job shadowing.

By attending in-house training courses.

By learning ‘on the job’.��

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/11 Three advantages of an open-plan office to the company.

Easy to supervise.

Less space is required.

Less equipment required.

2 Three advantages of an open-plan office to the staff.

More social atmosphere.

Easy to ask for help.

Easy access to equipment/resources.

3 Four ways in which noise can be controlled in an open-plan office.

Move printers and other equipment to an area away from staff.

Use acoustic screens.

Group staff who work together in the same areas.

Use insulated flooring.

4 The term workflow means how the work is organised and completed. A good workflowwould mean that the tasks follow on from one another and be within the specifiedtimescale and in the correct order. A poor workflow would be where there are hold upsor delays during the task.

5 Ergonomics is the way in which work is affected by the work systems. These can be thelayout of the office, the design of the equipment or even the capabilities of the staff.

Page 198/2Factors that should be included in your report are:

the workflow

the ergonomics of the office

groups of staff who need to work together

the location of equipment such as printers, photocopiers, etc.

supervision of staff

access to fire exits etc.

placement of equipment with regard to windows, doors, power points

placement of fire extinguishers etc.

the type of work being undertaken in the office

access around the office.��

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27Unit 3 Answers

Restoration Antiques might motivate their staff by:

offering training

promoting within the company whenever possible

offering extra paid holidays

paying over the minimum wage

good management techniques

creating a friendly atmosphere

offering pension plans and other benefits

providing interesting and challenging work.

Phoenix Enterprises can motivate their staff in the same ways as Restoration Antiques andin addition offer:

promotion

the chance to work abroad or in different UK locations

training for a different type of work within the company

staff associations and social clubs

extra paid holiday or bonuses

extra staff responsibility.

Page 2061 Three motivational factors for the individual at work.

Pay rise.

Chance of promotion.

Bonuses or other staff benefits such as a company car.

2 Three ways in which companies can motivate staff without using financial benefits.

Good management techniques.

Offer training.

Give responsibility to staff.

3 Three factors that may demotivate staff.

Poor or autocratic management.

Unfulfilling work.

Little or no responsibility.��

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Three responsibilities that the directors of Phoenix Enterprises have towards their staff

with regard to health and safety.

Ensure all equipment is in good working order.

Ensure fire doors are not locked.

Ensure staff are provided with protective equipment when appropriate.

2 Three ways in which directors can help reduce injuries sustained at the computer.

Provide regular eye tests.

Provide wrist supports.

Rotate work so that time can be spent away from the computer.

3 Four measures to prevent accident and injury

Store chemicals safely.

Provide correct equipment.

Provide training for staff.

Provide information about risks.

4 Phoenix Enterprises should have the following procedures in place.

Emergency evacuation procedures.

Dealing with suspicious parcels.

Accident reporting.

Fire drill.

These are important as staff will know what to do in the case of an emergency oraccident. It is also a requirement of health and safety legislation that these proceduresare in place.

5 Four responsibilities that employees have with regard to health and safety in theworkplace:

To work safely.

To take care of the health and safety of yourself and others.

To co-operate with your employer with regard to health and safety.

To act responsibly in the workplace.

To use equipment safely and in accordance with instructions/training.

To report hazards and potential hazards promptly.

To report accidents and injuries.

To be familiar with first aid arrangements provided by the organisation.

To attend any training required by your employer.

Not to interfere with or misuse anything provided for their health, safety or welfare.��

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29Unit 3 Answers

1 Briefly explain the difference between express conditions and implied conditions in

relation to the contract of employment.

Express terms – those that have been explicitly agreed.

Implied terms – details that are necessary to make the contract workable or those thatare too obvious to be put in writing or details that relate to the customs and practices ofthe industry.

2 Three responsibilities employees have towards their employer.

To attend work as agreed.

To keep company information confidential.

To show loyalty to the employer.

Not to discriminate against others in the workplace.

3 Four rights employees have with regard to pay.

To receive not less than the minimum wage, if applicable.

To receive equal pay.

To receive an itemised pay slip.

To receive statutory sick pay.

4 State three responsibilities the employer has towards the employee.

To provide a safe workplace.

To require no more than the statutory number of hours.

To offer paid time off for ante-natal care, domestic emergencies etc.

To offer unpaid time off for parental leave.

To pay the minimum wage.��

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Producing complex business 1 documents · Producing complex business documents ... in the school...

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