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"Taking the fast lane to success' is a goal of a business called Spatial Internet - HSC - SSCE Business Studies - Question 26 - 2001 - Paper 1
Question 26
"Taking the fast lane to success' is a goal of a business called Spatial Internet. This information technology business has been operating as a partnership for two y... show full transcript
Worked Solution & Example Answer:"Taking the fast lane to success' is a goal of a business called Spatial Internet - HSC - SSCE Business Studies - Question 26 - 2001 - Paper 1
Step 1
Funding Options for Expansion into E-Commerce
Answer
To fund its expansion into e-commerce, Spatial Internet could consider a range of funding options such as:
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Owner’s Equity: The business can raise capital through the owners’ investment, allowing for greater control and avoiding repayment obligations.
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Retained Profits: Utilizing profits that are not distributed to owners can provide funds for reinvestment into e-commerce strategies.
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Short and Long-Term Loans: Applying for loans from financial institutions can provide immediate funding, although this comes with repayment obligations and interest costs.
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Leasing and Venture Capital: Leasing can enable Spatial Internet to acquire necessary technology without significant upfront costs, while venture capital can bring in larger sums in exchange for equity, introducing new expertise.
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Grants: Investigating governmental or non-profit organization grants specifically allocated for technological advancement can also provide funding without the need for repayment.
Step 2
Strategies for Managing Change to Achieve Effective Employment Relations
Answer
To manage the changes associated with expanding into e-commerce effectively, Spatial Internet should consider:
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SWOT Analysis: Conducting a SWOT analysis to identify strengths, weaknesses, opportunities, and threats in bringing e-commerce into the business. This informs strategic planning and resource allocation.
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Communication: Engaging in open communication with employees about the changes, addressing any concerns, and emphasizing the benefits of e-commerce may foster a positive environment.
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Employee Training: Providing training in e-commerce operations to enhance staff skills and promote a culture of continuous learning.
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Flexible Work Arrangements: Offering flexible schedules can increase job satisfaction and help retain highly educated staff, keeping them motivated during the transition.
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Cultural Awareness: Understanding the diverse backgrounds of employees can foster an inclusive environment as e-commerce may attract varied customer bases and international collaborations.
By implementing these strategies, Spatial Internet can not only facilitate a successful transition into e-commerce but also promote effective employment relations and corporate social responsibility.