Tuesday 20
January 2009
Support
Reinforce
Identify gaps
How to approach exam
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Session 1 – Content and the Case Study
Session 2 – Operations
Break
Session 3 – Finance
Session 4 – People
Lunch
Session 5 – Bus 4 Challenge
Session 6 – Marketing
Session 7 – Success in Bus 4
Reasons why
a firm might
use a market
led approach
What is the approach?
a)
b)
Hard HRM
Soft HRM
Arbitration is the attempt
to settle an industrial
dispute through the use of
a neutral party

A) total return divided by expected lifetime
of the investment, expressed as a %

B) the net return on an investment when all
revenues and costs have been converted to
their current worth.

C) the length of time it takes for an
investment to pay for itself from the net
returns of an investment
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Based on unseen case study –
800/900 words – fictitious business –
read it and use it!
Time allowed - 90 minutes
4 main questions – worth 20 marks –
often split.
Focus of each main question either:
▪ Marketing
▪ Accounting and finance
▪ People
▪ Operations management
Revise/use relevant AS theory too!
Welcome to the world
of Park Leisure
Size & scope
Owners & Objectives
Customers
Competitors
External Environment
Resources
Read the case study on Park Leisure
Highlight SOCCER points
(3 mins)
What are the main
problems facing Park
Leisure?
 Declining sales
 Falling profits
 Other?
Option Action
A
B
Themed weekend events
C
Focus on most profitable parks
Reposition into premium
timeshare market
 Productive efficiency - Critical
Path Analysis
 Facilities – Location
 Exam skills – Content,
Application, Analysis and
Evaluation
Look at Appendix A
Can you?

Draw simple networks, calculate Earliest Start
Times, Latest Finish Times, identify the critical path
and calculate total float?

Understand the implications of CPA for efficiency,
business decision-making, time based management
and working capital control?

Define the term, explain the purpose
A technique used to find the
cheapest and fastest way to
complete an operation.
CONTENT
RIGHT OF THE SCREEN
LEFT OF THE SCREEN
Give 2 benefits to
David of using
Critical Path
Analysis
Identify 2 problems
to David of using
Critical Path
Analysis
USEFUL BECAUSE………
HOWEVER………………….
Provides a clear outline of
the problem.
 Encourages forward
planning
 Improve efficiency
 Can identify critical
activities which must be
completed on time
 Control mechanism,


Construction of CPA not
enough to guarantee
success, projects need to
be managed properly
 Relies on estimates of
expected duration
 Does not guarantee this is
the right project for PLL
 Unforeseen circumstances
APPLICATION AND ANALYSIS

Can provide a valuable focal point for
management system, particularly important
for HH as this is a new venture and the
diagram will provide clarity to all involved.

However a lot will depend on David’s ability
to make sure that everything is implemented
correctly and each activity is completed on
time.
Paul Robinson, Marketing Director outlines an
alternative

Evaluate the key location
factors that the Park
Leisure Board of
Directors should consider
in choosing an
appropriate site for the
proposed time share
development. (10 marks)
List the key location factors the PLL
Board should consider.
Content
The initial capital cost and the
availability of finance.
Application
Financial data, e.g., payback,
ARR, NPV, break-even, on each
of the site
Crucial if PPL is to reverse its declining
performance
Suitability of the buildings and
their location to the proposed
strategy
Internal space, areas for parking and
facilities such as tennis courts etc.
Image of the building and the
local area
Which site would give the most upmarket image that would appeal to
premium customers?
Quality of the local transport
infrastructure
Which location is best served in terms
of roads, motorways, train stations etc.
Availability of workers
Would sufficient staff be prepared to
travel to isolated locations?
Time for a
Quick Break!
 Ratio Analysis
 Investment Appraisal
 Using the financial data to
support answers on Bus 4
Measures the ability of the business
to settle its debts in the short term
A
Current ratio
C
Stock turnover
ratio
B
Return on
capital
employed
D
Net profit
margin
A
Dividend yield
C
Net profit
margin
B
Gearing ratio
D
Asset turnover
A
Stock Turnover
C
Net profit
margin
B
Dividend per
share
D
Asset turnover
RETURN ON
CAPITAL
EMPLOYED
You will need to know:

How to calculate the ratios

How to interpret the ratios, some exam
questions give the results of the ratios as
part of the information.

Be prepared to use the information to show
application and analysis
Content & application

Techniques for comparing the value and timings of
different investment projects:

Payback – calculates the time period required for
earnings to cover the original investment costs

Average Rate of Return (ARR) – calculates the %
rate of return generated over a period of time

Net Present Value (NPV) – uses discounted cash
flows to convert future earnings into present values
Analysis – examples:


Interpreting the results of calculations
Advantages/disadvantages of using techniques
Evaluation - examples:
Considering relative importance of financial and
non-financial factors
 Making judgements on the most suitable
technique for a given scenario

Park Leisure Ltd
Anne Robinson,
Finance Director
outlines Option C
 Sale of smaller
parks to
generate cash
 Investment in
larger parks
Discuss whether Park Leisure Ltd
should sell its smaller parks in
order to finance investment in the
larger more profitable sites
(12 marks)
 Ann has identified 3 non core parks
which together generate sales of
£5.5 million and operating profit of
£200,000.
 The sale value including land is
estimated to be £4 million
FOCUS ON BIG PARKS

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Park Leisure need the funds
Focus on smaller number of
parks
Cutting costs for
maintenance
Need to upgrade facilities to
remain competitive
Improves profit margins
Finance raised can be used to
reduce debt, reduces interest
charge
KEEP ALL PARKS
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More parks = more
effective marketing, fixed
cost of marketing spread
over larger number of units
Offering customer less
choice
Smaller intimate parks USP
Lose park loyalty
Earning return, not loss
making
Employment Acts
Working Time Directive
National Minimum Wage Act
Employment Relations Act
Equal Pay Act
Race Relations Act
Sex Discrimination Acts
Trade Union Act
Developing Analysis
Consider positive and
negative
consequences for
business.
Write down 1 positive
and 1 negative effect.
Building Application

Nature of business and
organisation

Type of workers

Industry

Issues facing the
business
Context
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Temporary contracts

Part time

Less reliance on full time permanent workers
CONTENT = FLEXIBLE WORKFORCE
Analysis – examples:


Benefits of using temporary/part-time staff
Drawbacks of using temporary/part-time staff
Evaluation – example:
Judgement on whether benefits outweigh
costs for specific firms/circumstances
 Comparisons between short-term and longterm

1.
Watch the clip
2.
Look at the Appendix
3.
Note down the personnel issues
facing PLL in the table.
Write down how you would calculate the rate
of labour turnover for PLL during 2008
RTL = No leaving a business over a period of time x 100
Average no. employed over a given period
RTL = 42 x 100 = 10.9% PLL Labour Turnover for 2008
385
RTL = 19 x 100 = 4.7%% PLL Labour Turnover for 2007
400
To what extent do you agree with
Lucy Robinson’s view that Park
Leisure Ltd’s future success
depends on whether it can resolve
its personnel problems?
(12 marks)
Personnel issues
... And therefore
Increasing levels of labour turnover (up
from 4.7% to 10.9%)
mean increasing costs of recruitment
and training - could be one reason why
the company’s operating costs are going
up.
Falling year-to-year staff retention
may lead to increased training costs as
new staff will need induction training.
Increasing levels of labour turnover and
absenteeism
likely to be responsible for poor
customer satisfaction – a bad reputation
for service and customer care likely to
have a negative effect on future
bookings to PLL’s holiday parks, and
may also damage the success of any of
the options under consideration
But:
 PLL’s success also dependent on its ability to
appeal to holidaymakers – if not, it will go out of
business, regardless of the performance of its
workers.

Also depends on its ability to manage finances
effectively – increasing overheads are reducing
profits and an over-reliance on long-term
borrowing will increase the level of risk faced by
the company
 Marketing decision-making
 Marketing planning
Four methods of
setting a marketing
budget
Scientific versus Hunch
Marketing model – outlines
the process by which
marketing decisions can be
made on a scientific basis

Consider the benefits to the organisation of
taking a scientific approach to decision
making

Think about each stage and why it is useful to
the organisation in the case study
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E.g. Benefit of setting objectives – clear goal,
sense of purpose and direction, all working to
same objectives
MARKETING MODEL
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Reduces the risk, by basing
decisions on information
Likely to involve more than one
person, therefore reduce the
possibility of bias
Setting of objectives, linked to
aims and provide clear sense of
direction
Select strategy, look at
alternatives
Decisions monitored and
reviewed
HUNCH
Does not involve large
collection of data which
can be expensive
 Decisions made quickly
and avoids any delay
 Decisions not based on
data therefore no risk of
using information which is
out of date or flawed
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Write down 3 factors that will influence the
choice of the approach
 Size of business
 The character and experience
of the person involved
 Information available
 Predictability of the market
 Speed of the decision
HR
Marketin
g Plan
FINANCE
Operation
s
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The vote was unanimous, the Board decide
to go ahead with Option C. To sell off the
less profitable parks and invest heavily in the
larger parks
The marketing plan will focus on targeting
the premium end customer and developing
their product by building and enhancing park
facilities
Discuss whether developing a marketing
plan will guarantee the success of the
project (20 marks)
Plan your answer to the question
above.
You have 3 minutes
 Details a business’s marketing
strategy showing how it will be
carried out
 Sets out an action plan to achieve
marketing aims and objectives
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Help to co-ordinate new project particularly
important to PLL as it is likely to be a long
term project and a new market segment
Enable the Board to review the firms progress
against actual outcomes
Will clearly outline how the marketing
function can help achieve its objectives
Developing plan targeting new market, help
understand the market

PLL objectives are unclear

Other factors will influence success, such as external influences

Depend on co-ordination with other functional areas

PLL needs to produce an integrated marketing mix aimed at its target
market – does it have sufficient knowledge of new targeted segment(s) or
is further research required and what will be the cost of this?

Marketing planning may take up valuable time and delay decision making

New market segment making sales forecasting more difficult

Better to focus and resolve personnel issues as this could affect success
Successful Exam Technique
 84 marks in total (includes 4 QoL marks) – one mark
per minute!
 Effective communication - make every sentence
count
 Different questions test different skills – use trigger
words and mark allocation:
6 marks – content, application
8 marks – content, application, analysis
10 marks – content, application, analysis, evaluation
A/S
Content
Application
Analysis
Evaluation
%
30
30
23
17
BUS 4
Content
Application
Analysis
Evaluation
20
%
20
26
34
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Tests knowledge and understanding - how well you can
recognise and describe key terms, concepts and theories.
16 marks available – 20%
Trigger words:
 State
 Outline
 Define
 Describe
Hint: if content isn’t relevant then no marks for application,
analysis or evaluation either!
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A good definition can get full content
marks and unlock marks for other skills.
Few content marks available and no time
to think!
Write a concise, accurate definition of one
of the following:
 Liquidity
 Communication
 Computer-aided manufacture (CAM)
… you have two minutes!
 Liquidity – the proportion of a firm’s assets
that can be easily converted into cash.
 Communication – the transfer of information
or ideas between people.
 Computer-aided manufacture (CAM) – the
use of computers to support the
manufacturing process.
 Tests ability to explain or apply knowledge to given
business scenario
 21 marks available – 26%
 Trigger words:
 Calculate
 Using examples
 Demonstrate
 In the case of…..
Hint: consistent application is crucial for good
evaluation!
 Tests how well you can develop an argument using
relevant theory – cause and effect
 27 marks available – nearly 34%
 Trigger words:
 Examine…
 Explain why….
 Analyse the reasons why…..
Hint: Questions worth more than 6 marks require
analysis!
 Tests your ability to weigh up the evidence
and make a judgement
 16 marks available – 20%
 Trigger words:
Assess…..
Discuss….
To what extent……
Hint: good evaluation requires a clear
decision!
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Most questions:
▪ Level 2 – good understanding, application,
analysis, evaluation.
▪ Level 1 – some understanding, application,
analysis, evaluation.

Level 3 – for 20 mark questions.
Content
Point

Point

Point

Point
Analysis
Yes
No
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Application
Evaluation
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Careful use of language will make it
easier for the examiner to award marks!
Signalling analysis:
▪ …because/as….
▪ …which will mean….
▪ …this could lead to…..

Signalling evaluation:
▪ The most significant factor is…because..
▪ The success of Option A may depend on…
▪ It is vital that…is concerned because…
1.
2.
3.
Outline two benefits to Park Leisure Ltd from
having a more flexible workforce. (6 marks)
Analyse the main benefits to Park Leisure from
having a more flexible workforce. (8 marks)
To what extent will the creation of a more
flexible workforce help to secure the future
success of Park Leisure? (12 marks)
1.
Outline two benefits to Park Leisure from having a more flexible
workforce.
(6 marks)


2.
3.
State benefit one – briefly develop, linking to PL
State benefit two – briefly develop, linking to PL
Analyse the main benefits to Park Leisure from having a more
flexible workforce.
(8 marks)
 This will help the business because…This could then lead to
a…
To what extent will the creation of a more flexible workforce
help to secure the future success of Park Leisure? (12 marks)
 Therefore, although keeping labour flexibility is important,
what is even more vital to Park Leisure is its ability to devise
an effective marketing strategy/improve customer service
because….

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Careful use of language will make it
easier for the examiner to award marks!
Signalling analysis:
▪ …because/as….
▪ …which will mean….
▪ …this could lead to…..

Signalling evaluation:
▪ The most significant factor is…because..
▪ The success of Option A may depend on…
▪ It is vital that…is concerned because…

Read and mark the following student answer.

Consider the strength of the response, in
terms of:
Content
Application
Analysis
Evaluation
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
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Student A
C = /2 P = /3 A = /4 E = /3
Total = / 12
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Bus 4 Student Revision Workshop