Feb/March 2018

Ruby operates as a sole trader. She makes handmade, individually designed greetings cards through job production. Her customers place great importance on high quality cards. Ruby has 3 part-time employees who receive an hourly wage rate. She is thinking about switching from an hourly wage rate to a piece rate system, where employees are paid according to the number of products they produce. Ruby believes this could improve the motivation of her workforce. During festivals and celebrations she gets a greater number of orders.

Motivating employees

Paul serves as the Managing Director of a private limited company named PShirts. It produces and sells shirts for men and women in country Y. Its items are priced below those of most competitors. Sales have dropped recently despite an economic boom. Paul is considering selling shirts in other countries. One director is concerned about legal controls in other countries. A summary of the accounts appears in Table 1.

Analysis of accounts

STC produces toothpaste for the mass market. Because competition in this market is intense, STC’s products have price elastic demand. STC follows a competitive pricing strategy (method). The marketing manager is considering replacing this pricing strategy in order to raise sales (see Table 2). STC’s head office is based in country X, while the factory is located in country Y. Complaints have been made about communication difficulties between managers and workers. Although STC has kept expanding, the managers still adopt a laissez-faire leadership style.

Marketing strategy

MSH is a large business that supplies floor cleaning services to other businesses. It has many long-serving employees. When a worker does leave, fresh recruits receive training through on-the-job training. MSH is based in an area with high unemployment. Demand for MSH’s services is falling, so it plans to step up promotion. The manager of MSH is considering moving the business to Main city, which is 50 km away. Main city contains many expanding industrial areas. The manager is concerned about how relocation might affect certain stakeholder groups.

Recruitment, selection and training of employees

Explain two characteristics that help George to succeed as an entrepreneur.

Analysis of accounts

Identify two stakeholder groups for CC. Explain one objective of each stakeholder group you have identified.

Recruitment, selection and training of employees

Identify and explain two marketing roles for City Café.

Marketing strategy

Identify and explain two reasons why quality matters for CC.

Business finance