6.1 Business management tools Topic Practice

Fru-Yo (FY)

Fru-Yo (FY) produces premium-priced yoghurts. FY has strong brand loyalty and relies only on word-of mouth promotion. FYs target market is consumers who may have health problems.

FY created two new zero-sugar fruit yoghurts. FY did no market research into the new yoghurts but is confident that FYs brand loyalty will ensure success. The market constantly changes because competitors regularly introduce new healthy yoghurts.

Table 2 shows forecasted financial information for the two new zero-sugar fruit yoghurts, Yoghurt A and Yoghurt B.

Using Table 2:

calculate the mean value of Yoghurt A's forecasted returns once on market (years 1-4) (show all your working).

With reference to STEEPLE factors, explain changes in the external environment that may have affected SVT (lines 20-21).

Answer the following question.

Outline two STEEPLE factors that influence P U 's decisions.

Outline two STEEPLE factors that influence P U 's decisions.

3. High Plains PLC (HP)
High Plains PLC (HP) owns 600 budget hotels. It operates in a rapidly growing market and has a 60 % market share of the budget hotel market.
Recent secondary market research on the hotel industry revealed:
- guests of luxury hotels are brand loyal
- 80 % of guests of budget hotels respond positively to a price reduction
- the budget hotel market is growing rapidly
- detailed statistics and information on all hotel chains.
HP's directors aim to increase occupancy rates in HP's hotels from the current 65 % to 80 % by the end of 2024. Each of HP's hotels has 400 rooms. People on business trips account for only 15 % of the hotels' bookings.
HP is considering two options.
Option 1: Price discounts on 100 of the rooms in each of HP's hotels
The discounts would undercut prices charged by its major competitor, Kampfort Inns (KI), by 10 %. HP would also offer a price match guarantee, which means that it would match any lower price charged by K I for any room.
Option 2: Upgrade 100 of the standard rooms in each of HP's hotels
Upgraded rooms, called HP+, would have improved IT facilities, new décor, a coffee machine and a better shower. HP+ rooms would be $ 20 per night more expensive than standard rooms. Estimated upgrade costs are $ 1500 per room, and the upgrades would take two years to complete. The HP+ rooms are targeted both at the business traveller market segment and at customers willing to pay slightly more for an enhanced hotel experience.

Construct a Boston Consulting Group (BCG) matrix for HP, identifying the correct segments for HP's standard rooms and its HP+ upgraded rooms if Option 2 is chosen.

3. Dean West Tutoring (DWT)
Dean West was an International Baccalaureate (IB) business management teacher in a developing country (country X). He also offered private tuition to students in need of additional support. Five years ago, he decided to leave teaching and set up Dean West Tutoring (DWT).
DWT has grown in the last five years and now employs ten tutors offering face-to-face tuition in a range of IB subjects. The tutors work part-time. DWT takes a percentage of the fees that students pay for the tutoring. To establish positive branding for DWT, Dean expects all tutors to follow a strict code of conduct. He also reviews each tutor's performance and student feedback every week. Some tutors are feeling demotivated.
With the worldwide growth of online learning in the last few years, Dean saw an opportunity to expand DWT. He discovered a large market in Asia, particularly in China. Online one-to
one tuition in Asia is charged at an hourly rate that is three times higher than that usually charged in country X. DWT would need to hire agents in Asia to find potential students who want to learn online.
As the new school year is starting soon in China, Dean will need to act quickly. He is considering drawing up a Gantt chart to assist his planning.
However, DWT's existing tutors are concerned about the expansion due to their lack of experience and equipment for online tutoring.
Dean is now considering two options to ensure that D W T has enough suitable tutors for expansion to online tuition:
- Option 1: Offer training and support to the existing tutors.
- Option 2: Recruit new tutors from anywhere in the world with online teaching experience.

Explain one advantage and one disadvantage for Dean of drawing a Gantt chart to assist his planning for the expansion to online tuition.

HSM Bakery Ltd. (HSM)

HSM Bakery Ltd. (HSM), a privately held company, produces baked goods (bread, cakes, and cookies), which are sold to shops.

In recent years, HSM has broadened its target market by producing a range of gluten-free cakes.

The production of HSM's cakes for six months in 2023 are shown in Table 4.

Using Table 4, determine the mode value of HSM's production of cakes (no working required).
Figure 3 and Figure 4 show HSM's sales revenue from all of its baked goods (bread, cakes, and cookies) for 2023 and 2024.

Key:
Cookies
Cakes
Bread

Key:
Cookies
Cakes
Bread